MTA Fuel Costs Could Exceed $95M as Iran Tensions Drive Up Diesel Prices

The New York Metropolitan Transportation Authority, which runs the city's subway system under the leadership of Zohran Mamdani, is projected to incur over $95 million in excess fuel costs as ongoing U.S.-Iran tensions push energy prices higher, according to reports.

5 Million Gallons Purchased Monthly

The MTA purchases 5 million gallons of fuel monthly to operate nearly 6,000 buses and 10,000 subway commuter trips, according to a report cited by Bloomberg on Monday. The agency projects roughly $95.6 million in excess fuel costs for 2026, the report said.

The agency had originally budgeted $146 million for fuel, but its fuel hedging program cut costs by more than $50 million, the report said. The program hedges half of its future fuel purchases over a one-year period, during which the MTA locked in an average diesel price of $2.28 per gallon, the report noted.

Nationally, the average diesel price on Tuesday was $6.3521 per gallon, according to the American Automobile Association. That price rose 0.29 cents from Monday's average of $6.3492 per gallon.

Trump's Oil Holdings Draw Criticism

Amid elevated fuel prices, President Donald Trump's oil holdings have reportedly risen 43% since late last year. According to a report from Democratic members of the Joint Economic Committee, Trump's oil stock portfolio is valued between $22.5 million and $81.6 million.

Trump's windfall has drawn sharp criticism from California Governor Gavin Newsom, a Democrat, who said the president had sworn an "oath" to oil companies. Trump has also boasted that oil producers have recorded hundreds of billions of dollars in profits since the Iran war began.