Media Release

The Bus Industry Confederation (BIC) is calling on the government to maintain existing diesel fuel standards and avoid changes to sulphur content. BIC is also advocating for practical steps to manage fuel demand and warning of potential pressure on public transport as schools return next week.

Australia’s bus and coach industry relies almost entirely on diesel, with around 98 per cent of vehicles using it as their primary fuel. Buses account for around 53 per cent of all public transport trips each day. Almost every bus Australians rely on to get to work, school or medical appointments is fuelled by diesel.

BIC Executive Director Varenya Mohan‑Ram said diesel buses remain the backbone of Australia’s public transport system and must be protected.

“Around 18 per cent of students travel to school by bus, and about half of pensioners use public transport each week. Any disruption to diesel supply or fleet reliability would be felt immediately by our most vulnerable Australians” said Mr Mohan-Ram.

BIC welcomed the Government’s decision to provide fuel excise relief, acknowledging it as an important step for operators facing rapidly rising costs. “The industry appreciates the Government’s recognition that fuel affordability and availability are critical to keeping buses running,” said Mr Mohan‑Ram.

Victoria and Tasmania have temporarily introduced free public transport, and Queensland has reduced fares to 50 cents. These measures are welcome, but there needs to be a commitment to extend them for the duration of the crisis, and for other states and territories to consider similar action

“Fare relief has been an important cost of living measure, and the bus industry strongly supports it” said Mr Mohan‑Ram. With more people shifting to public transport, bus networks need to be prioritised to ensure communities can continue to move safely and reliably.

Mr Mohan‑Ram said there are sensible, temporary options governments can use to help manage fuel demand without risking bus services. “Measures such as work from home arrangements for non‑essential government employees or staggering start times can help ease peak demand and reduce pressure on fuel supply,” he said.

Ensuring diesel fuel standards are maintained

BIC strongly warns against any changes made to diesel sulphur content, warning that such measures would seriously compromise fleet reliability, safety and emissions performance across Australia’s public and private bus networks.

“Diesel sulphur limits exist for a reason. Modern bus engines are not designed to operate on higher sulphur diesel. Any change would risk widespread vehicle damage and service disruptions at a time when public transport is more important than ever” said Mr Mohan‑Ram.

Advice from original equipment manufacturers (OEMs) is clear – higher sulphur diesel leads to accelerated engine wear, failure of emissions systems and costly downtime, reducing fleet availability during a period of heightened passenger demand.

“These vehicles are critical national assets. Compromising fuel quality would jeopardise the reliability of bus services that millions of Australians rely on every day,” said Mr Mohan‑Ram.

ENDS