Rising Costs Impact Diesel-Powered Bus Transport in Norway

Norway’s passenger transport by bus faces increased costs as the latest data reveals a significant change in the cost index for diesel-powered buses. The figures, updated as of the first quarter of 2023, highlight the challenges faced by the industry in maintaining affordable services.

According to the report released by the Norwegian Transport Authority, the cost index for diesel-powered buses reached a level of 109.1, representing a quarterly percentage change of -0.3%. However, when comparing the first quarter of 2022 to the first quarter of 2023, a substantial increase of 7.4% was observed. The cost index is measured against the fourth quarter of 2021, which serves as the baseline with an index level of 100.

Analyzing the sub-index components, it becomes evident that several factors contribute to the rising costs. Labour costs, although slightly decreasing by -0.8%, still account for a significant portion of expenses, reflecting a 4.7% increase compared to the first quarter of 2022. Auto diesel costs experienced a significant decline of -5.5%, but due to the high baseline, they remain at an elevated level, with a 10.5% increase year-on-year. Depreciation costs saw a notable surge of 7.0%, indicating higher capital expenditure and associated expenses. Interest rates also played a role, with a substantial decrease of -4.3%, contributing to an overall increase of 58.9% in comparison to the first quarter of 2022. Repair and maintenance costs exhibited a moderate rise of 2.5%, whereas administrative costs remained relatively stable, showing a marginal increase of 0.1%.

The rising costs in diesel-powered bus transport pose challenges to operators, who strive to provide affordable and efficient services to passengers across Norway. The increase in fuel prices and other contributing factors have impacted the industry’s financial viability, potentially leading to adjustments in fares or operational strategies.

The Norwegian Transport Authority will closely monitor the cost index for passenger transport by bus to assess the long-term implications and explore potential measures to mitigate the rising expenses. The next update on the cost index is scheduled for 4 September 2023, offering further insights into the evolving trends.

For a more comprehensive breakdown and detailed information on the cost index components, please refer to the official report provided by the Norwegian Transport Authority.

https://www.ssb.no/en/transport-og-reiseliv/landtransport/statistikk/kostnadsindeks-for-buss

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