It's probably skeletal at this point. But your fat distribution has everything to do with what you eat, really. Fat is going to build up where it wants to. And as fat depletes, it depletes from where it wants to, not where you work it from. A lot of people have the misconception that if you work out your arms, you'll lose fat from your arms. Or if you work out your stomach, you'll lose fat from your stomach. This isn't the case. The fat essentially is converted into muscle but does not 'go away' simply because you are working out. If you want a leaner figure or less body fat, you need to do a lot of cardio and eat better.
When you work out, you are working out your muscles, not your fat. The fat is over the muscles. So you can do 100 sit ups a day and still not see any results. It's like putting a cake behind a sheet. You can't see the cake, but it's still there. You just have to take the sheet away.
If you start removing all the junk from your diet you should start seeing results immediately. It's hard, but if it is indeed just fat on your hips, changing your diet to a healthier one will start solving that problem.

Love handles, for instance, the only way to get rid of them is proper diet.