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“It starts to add up real quick, especially on the diesel side.”
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With gas prices high and no relief coming, one department faced a hard decision to scale back a project. It now looks at electrification as an answer.
Average gas prices in California’s Hanford-Corcoran area have climbed to $5.62 a gallon, and the consequences are reaching beyond individual drivers.
For the City of Hanford, the spike is showing up in municipal budgets, with a fuel tab of nearly $94,000 in a single month.
According to The Hanford Sentinel, fuel costs in 2025 and 2026 rose from $4.44 per gallon to $5.62, about 27% higher.
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Russ Sterling, director of Hanford Public Works, said Hanford buys fuel below the retail rate, but that has not shielded the city from the increase. Hanford paid $2.70 per gallon for gas and $3.13 for diesel before those prices rose to $3.74 and $4.15 — increases of 39% for gas and 33% for diesel.
The city’s usage rate means those price jumps add up. In one month alone, Hanford consumed 10,512 gallons of gasoline and 13,142 gallons of diesel for a combined cost of $93,854. “It starts to add up real quick, especially on the diesel side,” Sterling told the Sentinel.
The department is aggressively pursuing electrification as a response to the increased cost.
Pairing solar with an electric vehicle is one way to shield yourself from rising gas costs. If high utility and fuel costs are straining your household budget, going solar is one of the best ways to save money on home energy. Readers can explore EnergySage to get free solar installation estimates and compare quotes.
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The report tied the rise in fuel costs to the war in Iran and the closure of the Strait of Hormuz, a major global oil chokepoint. Cities feel those increases in several ways since diesel is needed for heavy vehicles and equipment, while oil prices influence the cost of asphalt and other infrastructure materials.
Sanitation operations alone consume a large amount of fuel. Sterling told the Sentinel that Hanford’s Public Works Department runs 14 refuse trucks each day, and each one uses 40 to 50 gallons. “It’s a big hit to our budget,” Sterling said. “And we got to work within that budget.”
Because Hanford’s Refuse Division is structured as an enterprise fund, customer charges are meant to cover the cost of service. The Hanford City Council approved April 7 a phased refuse rate increase, which is set to reach $43.69 by 2030.
Measure H eased the pressure from higher fuel and oil expenses, Sterling said, and the city is also trying to reduce dependence by electrifying its fleet. Hanford already uses electric or hybrid light-duty trucks, golf carts, and lawn mowers, and officials are looking at adding EV charging stations around town.
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Heavy-duty vehicles have been hard to convert, however. The city tested an electric garbage truck, but it got through only about half a day before it needed to be recharged. Even so, moving away from fossil fuels can reduce exposure to price spikes.
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Sterling noted fuel will remain a concern across the city. “Right now we have a solid budget, and we haven’t had an issue,” he said. “As we develop our next budget, we’ll have to estimate our fuel costs in there. The fuel prices, they affect everybody’s budget.”
The stories below look at how policies, electrification, and even small equipment can shape a community’s exposure to fuel price swings.
• States are trying to target high-mileage drivers for EV adoption where gasoline use is heaviest.
• California gave counties and cities more authority over local oil and gas operations.
• Across the U.S., oil and gas pollution is linked to asthma and premature deaths.
• In neighborhoods and public works yards, gas-powered lawn equipment adds pollution.
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