School districts explore alternative fuels amid rising diesel costs

August 13, 2026 By     0 Comments

Millions of students are returning to school as school districts face higher diesel fuel prices. According to data from the U.S. Energy Information Administration, the national average diesel price reached $5.30 per gallon, an all-time August high.

About 90 percent of the nation’s 480,000 school buses operate on diesel. Some districts have added alternative-fuel buses to reduce their exposure to changes in fuel prices.

Propane autogas is among the alternative fuels used by school districts, with more than 24,000 propane-powered school buses operating in 1,100 districts across 49 states, according to the Propane Education & Research Council (PERC).

“When diesel goes up by two dollars a gallon and propane autogas only goes up about 15 cents, that’s a big difference,” says Sam Corson, bus and automotive maintenance manager for Newport News Public Schools in Virginia.

A recent survey by the Association of School Business Officials International and the National Association for Pupil Transportation found that more than half of school districts surveyed were over budget on fuel. Fourteen percent reported exceeding their fuel budgets by more than 20 percent. About two in five districts said they had consolidated bus routes or limited transportation services to compensate, according to the survey.

“While diesel prices swing by dollars per gallon, propane autogas moves by mere pennies,” says Joel Stutheit, senior manager of autogas business development at PERC. “Districts operating propane autogas buses have seen prices under a dollar a gallon when diesel topped five dollars. That stability preserves hundreds of thousands of dollars for the classroom.”

Newport News Public Schools reported saving about $439,000 on fuel last year and $2 million over the past nine years with a fleet of 189 propane buses. The buses travel more than 2.7 million miles annually, according to the district.

“I’m grateful we weren’t in a situation where we had to recover funds from another part of the budget just to cover fuel,” says Corson.

In Indiana, the Wa-Nee Community School Corporation reported paying an average of 99 cents per gallon for propane autogas last year, compared with local diesel prices that reached $5.06 per gallon. The district estimates it saves about $10,000 for every 30,000 miles driven with propane buses. Nearly half of its 56-bus fleet operates on propane, and the fleet travels about 450,000 miles annually to transport 2,500 students.

“Every year, we save money so that our kids can continue in sports and music programs with no fees,” says Amy Rosa, the district’s director of safety and transportation.

The Beaverton School District in Oregon projects annual savings of $400,000 to $500,000 after expanding its fleet to 65 propane buses. Prince William County Public Schools in Virginia recently added 62 propane buses as part of its effort to diversify its fleet.

Propane buses also have different maintenance and emissions characteristics from diesel buses. According to PERC, propane-fueled vehicles do not require the same diesel emissions after-treatment systems, and propane engines can operate in cold temperatures.

PERC also says propane autogas engines meet or exceed certain upcoming federal emissions requirements. Districts considering alternative fuels will need to evaluate costs, infrastructure, vehicle availability and applicable federal and state regulations when making fleet decisions.


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