As diesel and gasoline prices are rising again, student transportation leaders are preparing for another unpredictable budget year. As fuel budgets dominate conversations, some say that propane needs to be part of the discussion as an alternative.

According to a new PERC report, through this year’s swings, propane autogas moved by cents while diesel moved by dollars, allowing districts to maintain rates between $1 to $2 per gallon.

Thanks to its abundant domestic supply, propane autogas pricing has remained far lower and more stable than gasoline and diesel, allowing districts to secure multi-year contracts with local marketers, often including low-to-no-cost fueling infrastructure implementation in exchange for long-term energy commitments.

“Districts are realizing they can’t just wait out this volatility,” said Joel Stutheit, senior manager, autogas business development for the Propane Education & Research Council (PERC). “Whether it’s the immediate savings seen in districts like Beaverton, or the operational flexibility of using propane autogas to balance fleet savings, sustainability, and performance, the solution is about regaining budget control.”

Examples in action

Recently, Beaverton School District in Oregon shared the roadmap of its nine-year journey with propane autogas. By growing their fleet from 10 to 65 propane autogas-powered buses, Beaverton has realized annual savings of approximately $400,000 to $500,000.

The district also likes that propane autogas engines, which lack the complex after-treatment systems (like DPF or DEF) required by modern diesel engines, have significantly lowered their total cost of ownership and reduced mechanical downtime.

PERC notes that a similiar success is mirrored by Wa-Nee Community Schools in Nappanee, Indiana. Honored as one of the 2026 Top Transportation Teams, Wa-Nee reported paying an average of $0.99 per gallon for propane autogas during the 2025–2026 school year. Compare this to local diesel costs reaching $5.06 per gallon; a savings of about $10,000 for every 30,000 miles driven.

“Every year we save money so that our kids can continue in sports and music programs with no fees,” said Amy Rosa, director of safety and transportation at Wa-Nee. “That’s our goal — to continue reducing costs for our students and our taxpayers.”

Clean air without complexity

Transportation leaders are finding they no longer have to choose between fiscal responsibility and environmental stewardship, PERC noted in its release. While diesel engines are becoming increasingly complex and expensive to meet tightening 2027 EPA emissions standards, propane autogas offers a cleaner, near-zero emissions profile that is already compliant today, PERC said.

More than 24,000 propane autogas school buses currently operate across 1,100 districts, safely transporting over 1.3 million students every day.