October 26, 2005

Fare increase approved to offset record high diesel prices

The TriMet Board of Directors today approved a fare increase to respond to record high diesel prices. The fare increase will take effect on January 1, 2006.

Currently, diesel prices are running 45 percent over TriMet's budgeted amount of $1.50/gallon. The average price paid so far this year is $2.17/gallon. TriMet purchases 6.5 million gallons of diesel annually. Given the futures market for diesel, the agency expects fuel costs to average $2.20/gallon – producing about a $5 million budget hole.

TriMet has a three-prong approach to respond to rising diesel prices: improve fuel efficiency, improve service efficiency and increase fares.

Increased fuel efficiency

TriMet has improved fuel-efficiency, likely making TriMet the most fuel-efficient transit agency in the country. These changes include:

Reducing idling
Adjusting transmissions, front-end alignments and steering control arms
Maintaining a set tire pressure

Evaluated service & eliminated low-ridership trips

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.

"We are operating our system more efficiently and consuming less diesel, but a fare increase is still needed to offset the dramatic price hikes for diesel," said TriMet General Manager Fred Hansen.

Fare increase

The January 1, 2006 fare increase includes:

15-cent fare increase for regular adult cash fares; $6 increase for monthly passes
10-cent fare increase for Youth/Student and Honored Citizen cash fares; $2 increase for monthly passes
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 fare increase is expected to cover record high diesel prices for the balance of the fiscal year.