May 28, 2008

Record-high diesel prices prompt a proposed fare increase

TriMet has dipped into reserves, made fleet more fuel efficient & cut staff positions to cover some of the escalating costs

TriMet is proposing a fare increase for September 2008 to offset record-high diesel prices. The agency laid out the impact of unprecedented diesel prices at today’s TriMet Board of Director’s meeting.

• TriMet buys 6.6 million gallons of diesel annually
• TriMet started the fiscal year 2008 (July 1, 2007) paying $2.12 per gallon for diesel, and budgeted $2.31 per gallon for the year ($15.6 million for the entire year).
• As of May 1, TriMet was paying $3.62 per gallon, a 71 percent increase from the start of the fiscal year. And as of May 21, TriMet was paying more than $4 per gallon for diesel.
• The increases are expected to add a total of $4.3 million in fuel costs for the year, ending June 30.

Offsetting fuel increases

Over the past several years, TriMet has made several adjustments to its vehicles, making its bus fleet one of the most fuel-efficient in the nation. These actions save more than $600,000 annually. TriMet has also transferred $2.5 million from other programs to offset the fuel hikes, as well as eliminated 18 staff positions. Even after all of these steps there will be a gap for the current and future budget.

Proposed fare increase

TriMet's fares are reviewed annually to ensure they keep pace with inflation. TriMet had planned to increase fares in September 2008 just five cents for general inflation. But with the exceptional increase in fuel, TriMet is proposing an additional $.15 or $.20 increase to cover the budget gap and future high fuel costs. That would bring the total September fare increase to either $.20 or $.25 for cash fares. Because of the volatility of the fuel market, TriMet’s Board of Directors is watching diesel prices and will make a decision on the rate at its June 25, 2008, board meeting.

Full details of the two fare options:

• $.20 cent option
• $.25 cent option

"We have done everything possible to offset these record fuel prices, but we must increase fares to help cover the cost," said TriMet General Manager Fred Hansen. "We are looking at two different rates to ensure the fare increase reflects what’s happening in the market and keep the impact to our riders to a minimum. We are also creating a new 14-day pass to give riders the savings of a monthly pass, but can be purchased in smaller increments."

The TriMet Board of Directors will hold a public hearing and vote on the proposed fare increase at its June 25, 2008, meeting.

Public Comments

Comments must be received by June 24, 2008, at 5 p.m.

Mail; TriMet-MK2, 4021 SE 17th Ave, Portland, OR 97202
Email: comments@trimet.org
Phone: 503-962-5806
Fax: 503-962-6469
TTY: 503-238-5811, 7:30 a.m.-5:30 p.m. weekdays