Rising diesel prices creating pressure for Minnesota bus company

It seems just about everyone is paying more for gas right now. But diesel prices are rising even faster.

According to AAA and the Minnesota Department of Revenue, gas prices are up 11% over the last month and diesel prices are up 20%. That's a major issue when it comes to school buses. Nick Martini, a former bus driver who now serves as vice president of Northstar Bus Lines, knows the vehicles inside and out.

When it comes to diesel prices and the situation, he said, "Yeah, it's dire."

He showed WCCO several recent invoices for a two-day supply of fuel for their Blaine operation. In June, it was $3,817. By September, that same supply cost $6,061.

"It's almost double what it was a couple years ago. And that's a huge impact for us," Martini said. "It's a big impact for districts or schools. Because at some point, you have to pass it on. We have to."

For years, the state has helped school districts compensate, but the percentage just isn't enough to fill the gap. 

The Minnesota Legislature gives districts a 2-3% increase for inflated costs. For perspective, the cost of diesel is up 85% year to date.

"I think the budget conversation for districts is probably the most serious thing. You're going back to taxpayers essentially through your school board and saying, but we've got this cost that we didn't really know, and it's gone up 30, 40% since we closed our budget and we have to find those dollars somewhere," Martini said.

He says the shared conundrum comes down to a shared question: What's going to make it end?

Martini says they're looking for ways to trim costs, so the buses aren't idling at the schools, but that's just a seasonal fix.