SFMTA Fuel Costs Rose 58 Percent Amid Global Oil Blockade
The agency spent $1.7 million monthly on fuel between March and June 2026 as California prices surged.
Updated on Oct. 6, 2026 in Oil and Gas
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Muni riders and the agency itself are grappling with the fallout of a global oil blockade caused by the war in Iran. The transit agency saw its monthly fuel spending jump 58 percent during the second quarter of 2026.
Why it matters
The spike in fuel costs deepens the transit agency's current $307 million operating deficit. This fiscal pressure will remain a central point of discussion as voters head to the polls this November to decide on two transit-related tax measures.
Between March and June 2026, the agency averaged $1.7 million in monthly fuel costs, a 58% increase driven by diesel prices that rose 62% over the last year. The agency currently holds a $307 million operating deficit that is projected to reach $434 million within five years.
The players
SFMTA
The city agency responsible for operating buses, paratransit vans, and transit infrastructure across San Francisco.
The details
The SFMTA maintains a fleet of 556 buses that consume 300,000 gallons of diesel each month, while paratransit gasoline costs hit $39,927 monthly. The price of diesel in California has climbed to $8.36 per gallon as the blockade of the Strait of Hormuz restricts global supply routes. Officials are now bracing for the November 2026 election, where two ballot measures propose new tax funding to address the widening structural deficit.
Timeline
2019: Agency identified $250 million in cost-saving measures.
March 2026 to June 2026: Average monthly fuel spend reached $1.7 million.
Past year: California diesel and gasoline prices saw significant surges.
November 2026: Voters will decide on two transit tax ballot measures.
Across the Bay
This fiscal crisis marks a significant departure from the agency's 2019 efforts, when it successfully identified $250 million in cost-saving measures. The current $307 million operating deficit now threatens to overwhelm those previous gains as global fuel supply costs remain volatile.
Transit riders should watch for how the agency manages its $307 million operating deficit heading into the November 2026 election. Future service levels or fare adjustments may be debated as the agency addresses the impact of high fuel costs on its budget.
The takeaway
The agency's long-term budget health is now tied to a $434 million projected deficit that will require attention from voters this fall. Keep track of the two transit tax measures on the November 2026 ballot to see how they aim to bridge this funding gap.
What happens next
Voters will decide the fate of two transit-related tax measures during the election in November 2026.
Further reading
For more information on energy impacts, visit the Oil and Gas section.
Source note: This article includes information reported by The San Francisco Standard.
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