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Bus Companies Buying Gas In Bulk To Circumvent Price Spikes

Bus companies say locking in gas prices continues to save them money.

Bloomington Transit Bus

Photo: WFIU / WTIU News

Bloomington Transit buys as much as 75% of its gas for a year so it's not as dependent on gas price fluctuations.

Transportation officials in Bloomington say high gas prices have not affected them because they have continued a practice in use at least since gas last topped $4 a gallon.

Bloomington Transit General Manager Lew May says his company buys gas in bulk, but gets most of it at a single price, rather than waiting for fluctuations.

“We lock in our price for fuel for about 75 percent of our fuel needs for the entire year, so we’ve got a guaranteed price that won’t be exceeded. In that sense, we’re somewhat insulated from big price hikes on fuel,” May says.

Indiana University Campus Bus Service Operations Managers Perry Maull says his company works the same way when it comes to locking in fuel prices. He adds weather has the biggest impact on ridership, not high prices other drivers are paying at the pump.

“We’ve had great weather in comparison to last year where we had the first three days of the spring semester remember last January when it was one record ridership day after another? And we haven’t had that.”

Maull says that is because most of his company’s ridership comes from students who live on campus.

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