Palmer Bus Services reports rising diesel costs add to expenses for school buses and their districts

NORTH MANKATO, Minn. (KEYC)- Palmer Bus Service is dealing with an increase in expenses this back-to-school season as the price of diesel is continuing to rise.

Coming out of the Labor Day weekend AAA reported the average price of diesel was at an average of $5.77per gallon across the country.

Jenna Fromm, CEO and co-owner of palmer said that increased expense has been affecting over 1,000 drivers she employs across the state.

In addition to rising equipment, labor and insurance costs she said it can make it hard for bus companies to balance the budget.

That financial strain can also be passed on to the districts a company works with, with many having fuel contracts that cover around 50 percent of company’s diesel costs.

Mankato Area Public Schools covers a base price of $2.30 per gallon with a fuel escalator clause to help account for increased expenses.

“It is very difficult for us and also very difficult for school districts who have their set budgets and there just isn’t room for these kinds of diesel prices,” Fromm said.

Fromm said many bus drivers employed by Palmer do it because they are passionate about supporting education.

During a time with increased financial strain for the industry, she said the support they receive from district students and families is appreciated.

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