Diesel Price Spike Strains Vermont School Bus Budgets

Vermont school districts are absorbing unplanned costs as diesel prices hit record highs, forcing some to consider budget cuts or dip into reserves to keep buses running.

Champlain Valley School District, which operates about 60 buses for about 3,600 students in Charlotte, Hinesburg, St. George, Shelburne and Williston, spends about $40,000 a month on diesel, up 60% from its average the year before, board chair Meghan Metzler said. The district could end $200,000 over budget if prices hold, and may need to tap reserves or freeze other spending, she said.

Lamoille North Supervisory Union, which contracts for 11 buses serving about 1,600 students in six towns, pays a surcharge once fuel tops $4.33 a gallon under its busing contract, a threshold diesel has already surpassed, business manager Deborah Clark said. She estimated an extra $41,000 to $42,000 in costs if prices stay elevated.

Otter Valley School District, which runs about 30 buses itself and keeps its own diesel storage tanks, avoided the spike by purchasing fuel before prices rose, board chair Laurie Bertrand said, though it expects to pay 50% to 75% more than budgeted once it refills its supply.

Retail diesel hit a national record of $6.53 a gallon in late September 2026, driven by the U.S. and Israel's war against Iran and Ukrainian attacks on Russian oil refineries.

This story was first reported by VTDigger.