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why don't bus companies complain about fuel prices ?????

General Transport Discussion not specific to one state

why don't bus companies complain about fuel prices ?????

Postby tartan » Thu Sep 21, 2006 8:20 pm

car owners always complain about rising petrol prices, but who don't bus companies complain too ???????

not complaining about rising petroleum prices would one day end with bus and fossil fuel dependent cities getting hopelessly wedged and painted into a corner with few ways out when the day comes when fuel prices rise sharply
Last edited by tartan on Fri Sep 22, 2006 8:35 pm, edited 1 time in total.
2008 forest routes...

there are still more losers than winners...

escaping the esplanade mountain still takes 20 minutes every day so give us back our esplanade service !!!!!!!
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Postby boronia » Thu Sep 21, 2006 9:47 pm

Normally one would expect that an increase in fuel prices would result in an increase in bus pasengers, so the axtra income would offset the operators costs. More revenue for the same kms/fuel consumption.

But I wonder what happens under the new contracts, where the MoT collects all the revenue, and only pays the operators a fixed amount per km. Does the operator get a bigger rebate for carrying more passengers?

I notice the STA has applied to IPART for fare increases based on higher fuel prices, so how do they get the benfit from higher fares anyway.
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Postby R-C » Fri Sep 22, 2006 4:38 am

Some companies enter into contracts with the fuel suppliers, and part of the contract is an agreed price based on quantity.

Also there are rebates for businesses using diesel.
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Postby boronia » Fri Sep 22, 2006 6:05 am

Most fuel contracts are based on offering discounts (x cents per litre) off current standard prices, rather than being fixed prices; so any increase in the standard price will still be passed on to the buyer. Same with rebates.
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Postby kitkat271 » Fri Sep 22, 2006 8:59 am

Maybe because in the grand scheme of things the impact of fuel prices is fairly minimal.

Can't speak for route operators but in my work as a coach operator, the increase in driver's wages, maintenance cost, marketing/sales costs, depreciation costs on coaches ... etc etc means that increase in fuel costs in a drop in the bucket, esp when you look at it from a per pax per day basis.
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Postby Nugget » Fri Sep 22, 2006 9:41 am

Most companies who use a vehicle as the primary means of earning revenue get a tax deduction for the fuel costs. Accordingly, bus companies, removal companies, couriers, etc (as well as Qantas) any fuel prices rises will have a minimal impact on profit. It will have some significant impacts on financial ratios such as EBIT and EPS so that's why Qantas complains.
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