Australia Urged to Swap Diesel for Electric Buses as Fuel Costs Soar
With diesel prices climbing past $3 per litre and growing concerns over fuel security, transport advocates are urging Australia to prioritise the rollout of electric buses across the nation. Currently, just 1% of Australia's bus fleet is electric, a stark contrast to 80% in urban China, a quarter in the Netherlands, and 12% in the United Kingdom.
Current State of Australia's Bus Fleet
In Australia, nearly 42,800 diesel buses were registered in 2025, compared to only 629 battery-electric buses, according to government data. This represents about 1% of the heavy bus fleet. While metro trams and trains predominantly run on electricity, buses—a core component of Australia's public transport system—remain heavily reliant on diesel, consuming approximately 530 million litres annually.
Varenya Mohan‑Ram, executive director of the Bus Industry Confederation, emphasised the critical role of buses, stating, "Buses carry more than half of Australia's public transport passengers. Fuel security is not just an operational matter. It is a matter of social equity and community resilience." He added that buses are essential for transporting children to school, commuters to work, and maintaining connectivity in regional areas.
Transition Targets and Progress
Most states and territories in Australia have set targets to transition their bus fleets to electric. For instance, Canberra and greater Sydney aim to be fully electric by 2040. The Australian Capital Territory (ACT) has already made significant progress, with electric buses comprising about 24% of its fleet.
Chris Steel, ACT transport minister, highlighted the benefits, saying, "Each electric bus is powered by 100% renewable electricity produced in Australia, they are cheaper to operate and not reliant on foreign fuels." Other regions are also advancing: South Australia will have 81 electric buses this year (about 8% of its fleet), Western Australia has rolled out its 100th electric bus, and all new buses purchased in Victoria are electric.
Benefits and Challenges of Electric Buses
Cameron Rimington, a senior policy officer at the Electric Vehicle Council, noted, "E-buses are by far the most impactful way to cut emissions from public transport." He explained that electric buses reduce carbon emissions, decrease dependence on foreign fuel sources like the Strait of Hormuz, improve air quality by reducing exhaust fumes linked to lung cancer and childhood asthma, and operate more quietly.
Helen Rowe, transport lead at Climateworks Centre, pointed out that electric buses offer resilience against fuel shocks, making public transport more reliable. However, she stressed that governments must also invest in charging infrastructure. Examples include Kinetic's purpose-built depot with overhead charging in Preston, Melbourne, and New South Wales' ongoing conversion of 11 electric depots.
Expert Insights and Community Impact
Prof Jago Dodson from RMIT University observed that Australia has been slower than other countries in adopting electric buses, but rising fuel prices and supply uncertainties could shift the cost-benefit analysis. "From a simple security point of view, there's probably a premium to be paid—to know that no matter what happens outside of Australia, we can still run our bus fleets on electricity," he said.
Dodson also highlighted the flexibility of buses in filling gaps between fixed-line services and improving coverage in underserved areas. "It's hard to roll out a rail line quickly," he noted, making buses a key solution for rapid deployment.
In Melbourne's west, communities have long campaigned for better bus services. Elyse Cunningham, sustainable cities community organiser at Friends of the Earth Melbourne, stated, "We know the government needs to make public transport more accessible as fuel prices go up. Buses are the fastest and the cheapest public transport solution that the government can provide." She added that switching to electric buses would offer quieter and smoother rides, benefiting low-income and migrant families.
Regional Initiatives and Future Outlook
A community-run electric bus pilot in Gippsland, Victoria, demonstrates potential even in regional areas. Since 2024, two mini e-buses, nicknamed Sandy and Sunny, have provided inclusive transport, reducing social isolation and improving wellbeing, as noted by Dr Magda Szypielewicz from La Trobe University.
Dodson concluded that the current fuel crisis adds urgency to the transition, emphasising, "Let's hope that we can learn some lessons from this time around. Actually use this to recognise that we do need to change and that the security of our transport systems is a core national security question."
