Bus operators to get additional £2.7m funding to offset rising fuel costs

Transport secretary Stephen Flynn says keeping bus services running is 'absolutely critical'

Bus operators to get additional £2.7m funding to offset rising fuel costsSTV News

The Scottish Government has announced an additional £2.7m in funding to help bus operators meet rising fuel costs, taking the total to £6.2m.

The money is aimed particularly at small and medium community operators to help maintain services and avoid higher costs for passengers.

Around £3.5m has already been provided since April 2026.

Transport Scotland is also rolling out a £2 price cap on bus fares across parts of the country.

The scheme is already active in the Highlands, Argyll and Bute, Moray, Shetland, Orkney and the Western Isles.

There are plans to expand the scheme, with the Strathclyde region next on the list.

Transport secretary Stephen Flynn said keeping bus services operating was “absolutely critical” in keeping the country moving, amid the ongoing war in Iran and the volatile oil market.

He said: “The services provided by bus operators and community transport operators are absolutely critical to keeping Scotland moving and allowing people to access essential goods and services.

“Fuel makes up a significant portion of bus operating costs, and this increase in costs poses real risk to services, fare increases and potential network collapse – particularly for quieter routes, rural and semi-rural areas and community transport organisations who operate on thin margins.

“I’m pleased that the Scottish Government is able to offer additional support at this time and provide what I hope is some much-needed assurance to transport operators and passengers alike.”

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Last updated Aug 10th, 2026 at 12:07

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