October 3, 2005
Corrective Action Plan adopted to better respond to record high diesel prices
Fare increase proposed
The TriMet Board of Directors today adopted a Corrective Action Plan to respond to substantial increases in the cost of diesel fuel. Currently, diesel prices are running more than 40 percent over TriMet's budgeted amount of $1.50/gallon. The average price paid so far this year is $2.12/gallon.
TriMet purchases about 6.5 million gallons of fuel per year. Given the futures market for diesel, the agency expects fuel costs to average $2.20/gallon – producing about a $5 million budget hole. The Corrective Action Plan allows the agency to remain fiscally stable.
Increasing fuel efficiency
TriMet has taken aggressive steps to improve fuel-efficiency and consume less fuel, including:
- Reducing idling
- Adjusting transmissions, front-end alignments and steering control arms
- Maintaining a set tire pressure
These changes have resulted in a six percent increase in fuel efficiency and allowed the agency to decrease the amount of diesel purchased annually, from 7 million gallons to 6.5 million gallons. These results likely make TriMet the most fuel-efficient transit agency in the country.
"The more efficiently we operate our transit system, the less fuel we consume and we reduce the financial burden on our budget and our riders," said TriMet General Manager Fred Hansen. "Efficiency alone cannot counter the tremendous increases we've seen for diesel fuel, which is why we’re proposing a fare increase."
Fare increase
The Corrective Action Plan includes a 15-cent fare increase for regular adult cash fares and a $6 increase for monthly passes. Youth/Student and Honored Citizen fares will increase 10-cent for cash fares and $2 on monthly passes. These fare increases are expected to cover record high diesel prices for the balance of the fiscal year.
To offset the impact of the fare increase, TriMet is introducing a new 7-day rolling pass. It provides the convenience and savings of a monthly pass, but allows a rider to purchase it in smaller increments.
The TriMet Board of Directors will vote on the fare proposal at its October 26th meeting. If approved, the fare increase will take effect January 1, 2006.