Rising diesel prices strain U.S. school district budgets

Soaring diesel prices linked to the war between the United States and Israeli-backed forces involving Iran are forcing school districts across the United States to tap emergency funds to keep buses running and, in some places, to maintain basic electricity and heating, according to school officials. Districts from Yakima, Washington, to Waco, Texas, have drawn down reserves as fuel costs rise faster than many can plan for, while remote communities in Alaska are prioritizing enough diesel to power classroom generators and heating.

The fuel squeeze is tied to disruptions in global oil supply since the conflict began in late February, when analysts said about one-fifth of the world’s oil supply was affected. U.S. school transportation relies heavily on diesel: the American School Bus Council estimates school bus fleets consume more than 800 million gallons annually. Since December, the average price U.S. fleets pay for diesel increased 67%, reaching $5.52 per gallon, an analysis estimated could add roughly $1.8 billion to annual operating costs for school bus systems.

Administrators said the speed of the increase is making budgeting difficult, even for districts that can absorb...