Rising Fuel Prices Drive Shift to Cycling Across Australia

Fuel Crisis Fuels a Two-Wheeled Revolution in Australia

A sustained surge in fuel prices across Australia—with unleaded petrol exceeding $2 per liter and diesel surpassing $3 per liter—has triggered a dramatic shift in consumer behavior. Industry data, retailer reports, and government statistics reveal a broad pivot toward cycling, e-bikes, and bicycle repair services as motorists seek relief from skyrocketing automotive costs.

"The weekly cost to run my four-wheel drive went from $60 to $165. I had to find another way." – Sam Hoskisson, Perth commuter

The Fuel Price Context

Global oil supply disruptions, attributed by some sources to the conflict in Iran, have been a primary driver of the price hikes. According to the Australian Automobile Association, average weekly car-running costs reached $453 in late 2025—including $94 for fuel alone. Since then, petrol prices have climbed by approximately 50% .

The Consumer Response: Pedal Power Takes Off

In Sydney, the shift is measurable.

• The City of Sydney recorded 600,000 bike-sharing trips in March, a 25% increase from the previous month.
• Cycling rates in the Sydney CBD nearly doubled compared to the same month last year.
• The newly opened Oxford Street cycleway logged nearly 100,000 uses in March.
• The Bourke Street cycleway recorded 134,254 uses—nearly triple the previous year's figure.

This surge in cycling has coincided with a 5% decrease in car traffic on major Sydney roads compared to the same period last year.

Retailers across the country are reporting unprecedented demand:

• Darwin: Electric bicycle sales have increased by 200 to 300 percent since early March.
• 99 Bikes (National): E-bike sales surged by 136% year-on-year in a recent week.
• Glen Parker Cycles (Perth): Owner Dennis Lightfoot reported e-bike sales jumping from 3-4 units per week to nearly 30 within a 10-day period.
• Blue Cycles (Darwin): Manager Matt King said e-bike sales reached the highest volume since the store opened 15 years ago.
• Trike Bike Australia: Inquiries have doubled, and electric tricycle sales—primarily to retirees—have increased by 30-40 percent.

"Entry-level e-bikes ($2,000-$3,000) represent a significant saving compared to annual car ownership costs including insurance, registration, and fuel." – Peter Bourke, General Manager, Bicycle Industries Australia

The demand is not just for new bikes. Repair services are struggling to keep up:

• Darwin: Wait times for servicing now extend to several weeks.
• Bicycle Fix (Darwin): Owner Philip Rose said his business is four to five times busier than the same period last year.
• Samson Cycles (Brunswick, Melbourne): Workshop bookings are significantly up.
• Velo Cycles (Carlton North, Melbourne): Workshop demand is now similar to levels seen during the COVID-19 pandemic.

• Sam Hoskisson (Perth): Purchased an e-bike after weekly diesel costs for his 4WD rose from $60 to $165.
• Katerina Widerington-Oliver (Katanning, WA): Acquired an e-bike specifically to manage fuel cost increases.
• Jacinta Peperkamp: Reports relying on her e-bike due to high fuel expenses, now commuting further than before.
• Violette Kirton: Says she is considering selling her car and relying entirely on bicycles.

Industry Perspective: Long-Term Economics

Industry leaders argue the shift is not just about fuel prices, but about total cost of ownership.

Peter Bourke (Bicycle Industries Australia) noted that over half of all trips in Australian capital cities are less than 5 kilometers, yet a small fraction are made by bicycle. He cited modeling by We Ride Australia showing that e-bike purchase incentives generate a return of nearly seven dollars for every dollar invested.

Peter McLean (CEO, Bicycle NSW) added that the long-term costs of owning and maintaining a car exceed those of even high-quality e-bikes.

Benefits cited by industry representatives include improved public health, reduced road congestion, lower emissions and noise, and a potential reduction in car accidents.

Government Response and Infrastructure Gap

• The Department of Infrastructure and Transport is working with state and territory governments on a framework to improve e-bike safety and community confidence.
• The federal government has committed $100 million to upgrading and creating new bicycle and walking paths, with 30% of approved projects either under construction or completed.
• However, less than 1% of federal road funding is allocated to active transport.

• ACT, NSW, and South Australia: Offer rebates or interest-free loans for e-bike purchases.
• Queensland: Previously offered a $500 rebate for e-bikes, but funding was quickly exhausted.
• Victoria: Aims for 25% of trips by walking or cycling by 2030 (up from 18%), but allocated only $7.5 million in the 2024 budget for active transport—well below the estimated $520–660 million needed for 16 priority cycling corridors.

"83% of potential riders would feel comfortable on protected bike lanes, versus 22% on painted lanes." – City of Melbourne research

Experts estimate that Australian cities are building cycling networks at a pace that will require decades to complete a cohesive system.

Key barriers cited:

• Political hesitation
• Community opposition over parking removal
• Funding shortfalls

Safety concerns remain the main barrier to cycling. Narelle Haworth (Professor, Queensland University of Technology) noted that painted bike lanes can increase risk as cars pass closer. A Transport for NSW spokesperson stated that public and active transport options remain affordable modes of travel.

International Context

Australia is not alone in this trend. Other nations have successfully incentivized cycling:

• Sweden: Introduced a 25% e-bike rebate in 2018.
• Netherlands: Allocates approximately $45 per capita annually on cycling infrastructure and provides financial incentives for cycling to work.
• United Kingdom & China: Have implemented various programs to encourage e-bike use.