Unlike other agencies, RTC expecting to spend less on fuel due to switch to natural gas

LAS VEGAS (KSNV) — As diesel prices climb across Nevada, large public agencies that rely on fuel are facing growing budget pressure — and some are looking for ways to spend less at the pump, even as riders could end up paying more.

Data from the Clark County School District shows a $2 million to $3 million increase in diesel spending from 2025 to 2026, with the district expecting to pay $2.9 million more in diesel expenditures because of rising prices.

“The economy runs on diesel. So as prices go up, that impacts everybody and everyone’s pocketbook,” said Gbenga Ajilore, chief economist at the Center on Budget and Policy Priorities.

Diesel in Nevada has risen as high as $6.80 a gallon, $0.39 above the national average of $6.41 a gallon. Ajilore said higher diesel costs can force difficult decisions for agencies trying to balance budgets.

“As that goes up and becomes more expensive, you have to anticipate higher prices. Then you have to say, ‘OK, well, we need to balance this budget. Where do we cut?’ And then that is going to be where the impact is,” Ajilore said.

Economist Richard Gearhart said relief is not likely soon.

“Unfortunately, no. Prices are going to remain elevated,” Gearhart said.

“Things are only going to get worse from here, unfortunately. And there is no quick solution,” he said.

Gearhart said that even if military action overseas ended, fuel prices would not immediately return to what Nevadans consider normal.

“Even when oil prices fall, gas prices and diesel prices do not fall immediately and take about six months to return back to normal,” Gearhart said.

While the school district is bracing for higher diesel costs, the Regional Transportation Commission of Southern Nevada says it is spending less on fuel than before by shifting away from diesel and toward compressed natural gas. The RTC says the majority of its bus fleet now runs on compressed natural gas, with a gallon running at $3.08, compared with AAA’s projected average for diesel at $6.41.

According to the RTC, its fuel budget is decreasing from $17.2 million in the 2026 fiscal year to $11.5 million for 2027.

But potential savings on fuel could coincide with higher costs for transit riders. Documents obtained by News 3 show possible fare increases the RTC may approve for 2027. Under the proposal, a single ride would increase from $2 to $3. The two-hour and 15-day passes would be eliminated. A 24-hour pass would increase from $5 to $7, and a 30-day pass would increase from $65 to $80.

Ajilore said higher fares can hit riders who already rely on transit because it is the more affordable option.

“Who are the people that are going to take the bus? If they had the option of driving cars and being able to afford that, then they would do that. But because this is the choice that they have and now that that is becoming more expensive, it is starting to squeeze their books. There is no way of avoiding the higher prices and the higher costs; the question then becomes how do you compensate for that?” Ajilore said.

Despite receiving data from the RTC, the commission was not able to provide an interview. Questions remain about whether the proposed fare increases are intended to offset the purchase price of natural gas buses, and if not, what is driving the proposed increases. As of this article’s draft, a response from the RTC was still pending.