Soaring diesel prices have forced Houston-area transit and school officials to look for cheaper ways to fuel their fleets. The nationwide average for a gallon of diesel stands at $6.52, within a penny of its record high set on Tuesday. In Houston, the fuel hit a record high of $5.89 on Wednesday.
Two local organizations — METRO and the Cypress-Fairbanks Independent School District — are already moving toward alternative fuels, according to separate statements provided to ABC13.
METRO’s Gradual Shift
METRO runs a large bus system in Harris County, Texas. Its spokesperson told ABC13 that the agency still relies heavily on diesel for its buses, but it has been moving toward compressed natural gas, or CNG, over time.
“As vehicles reach the end of their useful life, METRO has been gradually transitioning its fleet toward compressed natural gas (CNG) buses,” the spokesperson said. “CNG prices historically have not experienced the same level of price fluctuations as diesel.”
The agency has placed a multi-million-dollar order for low-emission buses as part of that shift. METRO said it received federal funding to support a $93 million contract with New Flyer for 100 CNG buses, plus CNG fueling infrastructure at the Northwest Bus Operating Facility. The agency has also recently ordered an additional 35 CNG buses.
Fuel Budget Woes Ahead
METRO expects its fuel costs to rise sharply in its upcoming budget. The agency said its fuel budget will increase by $6.7 million from the current fiscal year to the next.
The agency said it anticipated higher fuel costs when planning the budget.
Propane Keeps CFISD Running
The Cypress-Fairbanks Independent School District, known as CFISD, runs a fleet of 939 school buses across its 186-square-mile district. Of those, 342 are diesel and 419 are propane-powered.
The district said it invested in clean propane technology using capital funds authorized in the voter-approved 2019 Bond. That investment has helped shield the district from fuel price shocks.
“While regional diesel prices have risen to $5.27 per gallon, CFISD mitigated market volatility by investing in clean propane technology using capital funds authorized in the voter-approved 2019 Bond,” the district said.
Propane prices are holding steady at $1.02 per gallon, according to the district. That compares to diesel’s $5.27 per gallon in the region.
“With propane prices holding steady at $1.02 per gallon, utilizing propane for daily home-to-school routes significantly shields daily classroom dollars from fuel inflation,” the district said.
What Energy Experts See
Energy experts ABC13 spoke with said they expect diesel price fluctuations to continue, including net increases for the foreseeable future.
If that prediction holds, some local agencies and school districts will face soaring prices as they plan for a future without diesel.
The Numbers at a Glance
- METRO: 100 CNG buses ordered through New Flyer contract, plus 35 additional CNG buses recently ordered
- METRO: $6.7 million expected increase in fuel budget from current fiscal year to next
- CFISD: 939 total school buses, 342 diesel, 419 propane
- CFISD: Propane at $1.02 per gallon, diesel at $5.27 per gallon in the region
The Case for Propane
CFISD’s propane buses operate at a fixed price while diesel climbs.
The district’s 2019 bond vote gave it the funds to invest in the technology.
What Comes Next
Both organizations are betting on stable fuel costs for the technologies they have chosen. METRO is relying on CNG’s historical stability. CFISD is relying on propane holding steady.
The transition is underway, the orders are placed, and the district’s investment has positioned it for the current price environment.
Source material: “Soaring diesel prices has METRO, Cy-Fair ISD moving toward alternative fuel sources,” ABC13 Houston.
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