As gas prices continue to rise because of the U.S. war in Iran, consumers are not the only ones being impacted. La Plata County and the city of Durango are also beginning to feel the squeeze.
While fuel spending remains within budget, if costs continue to rise both government’s could go over budget, forcing them to make decisions about reducing services and/or spending in other areas.
At the county level, the financial impact will depend on how long prices remain elevated, said Sarah Jacobson, administrative analyst.
The county has more than 200 pieces of moving stock across all departments, Jacobson said. Last year, the county used 83,076 gallons of unleaded fuel and 87,288 gallons of diesel across its entire vehicle fleet.
La Plata County Road and Bridge Department and the Sheriff’s Office are the county’s largest fuel consumers.
Since January, the cost of unleaded fuel has doubled, and the cost of diesel has almost doubled, Jacobson said.
For 2026, the Road and Bridge Department budgeted $399,628 for fuel. As of May 4, the department had spent about 24% of that amount, said Duane Truitt, public works director.
While spending is running slightly below budget, those figures reflect only the first few months of higher fuel prices, he said.
“If we continue using fuel at the same rate, we’re probably going to get pretty close to – if not exceed – our budgeted amount, and then we’d have to do some things,” Truitt said.
Those “things” could include service reductions. One example, Truitt said, would be scaling back grading work.
Road grading – the process of shaping and leveling road surfaces – is a critical part of Road and Bridge operations and often requires multiple pieces of equipment. If fuel costs continue to rise, the department may have to reduce some grading work on unpaved roads, Truitt said.
The county is also dealing with secondary effects from higher fuel prices.
Jacobson said that because of rising fuel costs, the county’s magnesium chloride supplier has imposed a fuel surcharge of $730 per truckload on recent deliveries.
“That’s pretty substantial,” Truitt said.
The county begins each year with a limited budget for magnesium chloride. Once those funds are exhausted, the department can no longer purchase the product for the remainder of the year, he said.
“There’s just a lot of moving parts that make it really hard to predict, but we’re monitoring it closely and we’ll certainly try to get the most value for our funds and stretch them as far as possible,” Truitt said.
“There’s just a lot of moving parts that makes it really hard to predict, but we’re monitoring it closely, and we’ll certainly will try to get the most value for our funds to stretch it as far as possible,” he said.
Additionally, the cost of the petroleum-based products such as asphalt and emulsifier oil used in chip-seal projects are rising, although the county was unable to immediately provide an exact amount.
The county fleet department, responsible for maintaining all county vehicles and machines, is also contending with rising costs of parts, as shipping costs have increased, Jacobson said. The cost of engine oil, hydraulic oil, gear oil and all other fluids have also gone up.
For now, the county is not reducing grading work, magnesium chloride applications or other services, and has some cushion built into the budget to account for those sorts of price fluctuations. But if fuel prices remain elevated, adjustments may become necessary later in the year, Truitt said.
Unlike the county, the city of Durango does not build a cushion into its budget to account for fuel market volatility, city spokesman Tom Sluis said in a written statement to The Durango Herald.
Instead, departments provide annual estimates for gasoline expenses based on historical pricing trends and forecasts from the U.S. Energy Information Administration.
In January, the EIA estimated retail gasoline prices in the U.S. would decrease in 2026 by about 6% across all regions. They have since re-visited those predictions following the war in the Middle East, as gas prices have increased 50% since the war with Iran began.
Sluis said he could not immediately provide an update on how individual department fuel budgets are performing. However, if fuel expenses exceed budgeted amounts, departments would need to seek City Council approval to amend their budgets.
Uncertainty in gas prices is one of the reasons the Transportation Department is following the industry’s shift to zero-emission vehicles, he said.
In addition to making headway on obtaining an electric bus, the city is offering an alternative for people facing higher prices at the pump through the Free Fare Summer Program.
The program is funded through the council’s discretionary use of the Lodgers Tax funds, and offers free fixed-route services June 1 through Aug. 31.
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