A sustained increase in fuel prices across Australia is coinciding with a reported rise in bicycle usage, sales, and repair services.
Unleaded petrol has exceeded A$2 per litre, and diesel has surpassed A$3 per litre. Sources attribute this price increase to global oil supply disruptions, with some reports citing the ongoing war in Iran as a contributing factor.
Economic Context and Consumer Response
According to data cited in one report, the Australian Automobile Association estimated average weekly car-running costs at A$453 in late 2025. Some commuters report significant personal cost increases.
In Perth, one resident stated their weekly diesel expenses for a four-wheel drive vehicle rose from A$60 to A$165. Another resident in Katanning, Western Australia, reported purchasing an e-bike to manage fuel costs.
In Sydney, the City of Sydney recorded 600,000 bike-sharing trips in March, a 25% increase from the previous month. Data from Transport for NSW reportedly indicated that cycling rates in the Sydney CBD nearly doubled in March compared to the same period the previous year. Car traffic on major Sydney roads decreased by approximately 5% in March compared to the previous year, according to the report.
Impact on Cycling Industry
Sales of New Bicycles and E-Bikes
Retailers across multiple states report a surge in sales.
- Darwin: Electric bicycle sales have increased by 200 to 300 percent since early March, according to local retailers. Matt King, manager of Blue Cycles, stated that e-bike sales reached the highest volume since the store opened 15 years ago.
- Perth: Dennis Lightfoot, owner of Glen Parker Cycles, reported an increase in e-bike sales from approximately 3-4 units per week to nearly 30 within a 10-day period. Greg Stoyles, owner of Mercer Cycles, reported increased demand for repairs and components for traditional bicycles.
- Sydney: 99 Bikes reported a 136% year-on-year increase in e-bike sales in a recent week. Chris Moore, owner of Omafiets, noted demand for entry-level e-bikes and cargo bikes.
- National: Peter Bourke, General Manager of Bicycle Industries Australia, confirmed a strong national growth in interest for e-bikes. Trike Bike Australia reported a doubling of inquiries and a 30-40% increase in electric tricycle sales, primarily to retirees.
Demand for Repairs and Servicing
Bicycle repair shops in multiple cities report extended wait times and high demand.
Darwin: Philip Rose, owner of Bicycle Fix, reported his business is four to five times busier compared to the same period last year.
- Melbourne: Ryan Billszta, owner of Samson Cycles in Brunswick, reported a rise in workshop bookings. Stuart Armstrong of Velo Cycles in Carlton North reported workshop demand levels similar to those observed during the COVID-19 pandemic.
- Shepparton: Leading Edge Cycles reported an increase in workshop activity.
- General Trend: Multiple sources indicate that many customers are bringing in older bicycles that had been stored, some since the COVID-19 pandemic, for repair and maintenance.
Industry and Government Commentary
Industry Perspectives
Peter Bourke, General Manager of Bicycle Industries Australia, stated that entry-level e-bikes (A$2,000-$3,000) represent a saving compared to annual car ownership costs. He advocated for government investment in safe, connected cycling infrastructure.
Peter McLean, CEO of Bicycle NSW, suggested governments should invest in active transport infrastructure rather than relying solely on short-term fuel excise reductions. He pointed to new cycleways as evidence of demand.
Peter Bourke also cited modeling by We Ride Australia indicating that e-bike purchase incentives generate a return of nearly seven dollars for every dollar invested.
Government Initiatives
- Federal: The Australian Department of Infrastructure and Transport confirmed it is working with state and territory governments on a framework to improve e-bike safety and community confidence. The department noted a A$100 million commitment to upgrading and creating new bicycle and walking paths, with 30% of approved projects either under construction or completed.
- State and Territory:
- The ACT, NSW, and South Australia offer rebates or interest-free loans for active transport.
- Queensland previously offered a A$500 rebate for e-bikes, but funding was exhausted.
- New South Wales: A Transport for NSW spokesperson stated that public and active transport options remain affordable modes of travel.
International Context
One report draws a historical parallel with Copenhagen. Before the 1970s oil crisis, approximately 10% of Copenhagen residents cycled regularly. Following the crisis, public protests led to increased investment in cycling infrastructure. Today, approximately 60% of Copenhageners commute by bike.
Other countries with programs to encourage e-bike use include:
- The United Kingdom
- China
- Sweden, which introduced a 25% e-bike rebate in 2018
- The Netherlands, which spends approximately A$45 per capita annually on cycling infrastructure and provides financial incentives for cycling to work.