GREENWOOD, Ind. (WISH) — A school superintendent on Wednesday said he might need to use his cash reserves if diesel prices don’t come down.
Greenwood Community School Corp. Superintendent Terry Terhune said his school corporation spent about $34,000 more on fuel from April to July of this year compared to the same period last year due primarily to rising diesel prices. According to AAA, diesel on Wednesday cost an average of $5.93 per gallon in Indiana, versus $3.79 per gallon one year ago. Terhune said he already postponed some summer maintenance projects such as re-sealing school parking lots in order to offset the increased costs.
“It has really hurt our operation funds to the extent that we haven’t planned for those increases,” he said.
Diesel prices are high because of the ongoing war with Iran. They reached a nationwide record average of $5.85 per gallon on Friday and have continued to rise since. Oil shipping through the Strait of Hormuz, which amounted to one fifth of the world’s prewar oil supply, remains virtually nonexistent. As Circle City Broadcasting has previously reported, diesel is taxed separately from gasoline and thus has not been subject to Gov. Mike Braun’s fuel tax suspensions.
Terhune said Greenwood has more than 30 full-size school buses, which are all diesel-powered, plus several smaller activity buses that use gasoline. He said about two thirds of the corporation’s nearly four thousand students ride the bus daily.
Greenwood isn’t the only school corporation facing high fuel costs. Indianapolis Public Schools officials said they spent about $15,000 more this past August than they did in August of 2025, despite consuming about 30% less fuel. Beech Grove City Schools officials said their fuel costs rose from about $8,600 in August of 2025 to $14,500 this past month. IPS leaders said they have reworked bus routes to reduce fuel consumption, though Terhune said he has not yet taken that step.
Other school districts have not faced the same impact. MSD Lawrence Township officials said they buy their school bus fuel in bulk every six months. So far, their fuel contracts have not reflected the increased cost. MSD Wayne Township’s buses are nearly all powered by propane and thus are not affected by oil prices.
Terhune said for now, his district will continue to monitor the situation and adjust expenses as necessary. He said he can also dip into the district’s cash reserves if needed, but that’s a last resort. He said he does not know at what point he would need to do that.
“We continue to plan accordingly and hope that there is an end in sight with diesel costs coming down,” he said. “But if not, we will continue to look for areas to save money where we can.”
