March 26 2026

Buses and coaches are fundamental to keeping Britain moving. Our industry accounts for two thirds of trips on public transport, delivering more than 11 million passenger journeys a day.  

While a proportion of modern vehicles are electric, hybrid or hydrogen powered, the plain truth is that the majority of buses and coaches across the country won’t go far without a daily top-up of diesel in the tank. 

That means the present conflict in the Middle East is creating challenges. It is concentrating minds on two related issues – the cost of fuel and confidence over adequate future supplies. 

To take cost first, prices have spiked since the recent conflict in the Middle East began, with increases at the pump of more than 20% over the last few weeks, and some operators reporting rises of as much as 50%. 

This is no small matter. For CPT members, fuel is usually the second biggest bill to pay every month, after payroll. In the case of bus operators, it typically amounted to 12.8% of overall operating costs last year according to our regular Cost Monitor – you can expect that percentage to be higher now. 

Many larger bus and coach operators have hedged their fuel and will be protected from the full impact for a time. However, small and medium sized companies are already seeing a very substantial impact and are bracing themselves for further volatility. 

CPT is already calling for bus and coach operators to be exempted from the Government’s planned 2p per litre increase in fuel duty in September. This would relieve pressure in this tight fiscal environment and encourage motorists to consider public transport. Exempting the industry from this fuel duty rise would cost the Treasury a relatively modest £142 million. 

More broadly, CPT’s advice to operators who are not hedged is to shop around to secure the best price, and to consider alternative means of supply where possible. Importantly, we’re urging members to avoid stockpiling and, above all, not to ‘panic’ buy. 

The good news is that there is still plenty of fuel in the tanks. What would be much more concerning would be a supply shock – or shortage.  

The Government has a contingency plan called the National Emergency Plan for Fuel, last updated in April 2024, which sets out a number of scenarios – including maximum purchases for motorists, limiting the hours of petrol sale and deploying reserve fleets of fuel tankers. 

Tough times would call for tough choices, and there would be a need to prioritise access to fuel. Alongside the emergency services, it is vital that public transport is at the top of that list. 

A bus can replace as many as 75 cars on the road – so by definition, it delivers a much more efficient use of fuel. It is no exaggeration to say that without public transport, the economy would simply grind to a halt – for millions, there would be no way to get to workplaces, to education or simply to access local shops and services. 

Similarly, a coach carrying 50 passengers typically replaces 25 trips by car. Coaches support 81,000 jobs, and coach passengers collectively spend £8.3 billion in tourist hotspots. If coaches were unable to fill up with fuel, it is hard to see how sporting events and music festivals could go ahead, and the country’s visitor economy would truly struggle.  

More significantly still, there is a reason why public transport continued running during the COVID-19 pandemic. Because without it, many key workers – NHS staff, carers, teachers, utility workers – would be unable to move around. 

Confidence and clarity that public transport will continue running would reassure the public. And finally, it would support the emergency services themselves – by helping to keep the roads clear and enabling support staff to travel. 

It is reassuring that the Government’s contingency plans recognise the importance of our sector, noting the need to deliver bulk petroleum to “emergency services, utilities and public transport”. We would urge ministers to go further – in its advice on sheltering from oil shocks, the International Energy Agency recommends that governments actively encourage a shift to public transport during times of fuel scarcity  

There is, presently, no cause for concern over supply or any need to stock up. But if the crunch were to come, it is essential that buses – and coaches – receive the priority they need, and CPT will continue to make that case to Government. 

Alison Edwards is Director of Policy and External Relations at CPT