The impact of spiralling fuel prices is the talk of the passenger transport sector. The issue has been raised at industry events over the past month, with passenger transport professionals considering the threat and the opportunity posed by fuel price escalation.

While bus and rail companies face large increases in operating costs as a result of higher fuel prices, there is growing evidence that the even higher price rises faced by motorists are persuading them to switch to public transport.

Addressing 250 people at the Passenger Transport Management Awards in London last week, one of the country's most senior passenger transport professionals had an upbeat message. Peter Hendy, London transport commissioner and chair of the Commission for Integrated Transport said the prospects of the industry are now stronger than they have been for many years.

He said: "I think the industry's full of optimism about what can be done in conditions where people are beginning to talk about the relative lack of necessity of things like road user charging simply because fuel for private vehicles is becoming so expensive that people are stopping using them of their own accord."

Hendy's optimism was supported by the latest results from the YouGov tracker poll for First Group, the bus and rail operator. It found that 39% of people believe that public transport use will increase in the next five to 10 years - up from 30% last November.

Public transport is also being viewed as a good place to invest in an uncertain economic climate. Mike Fox, a fund manager at The Co-operative Investments said last week: "The rising cost of filling up at the pumps is leading increasing numbers of people to choose public transport to save money and it is good news for providers."

But while public transport is looking forward to a huge increase in its market size within the next decade, it is also facing a large increase in its cost base.

Delegates at the Reducing Rail's Carbon Footprint conference in London last week heard that rocketing energy costs will see the rail industry's fuel bill double over the next two years. "We currently think energy consumption for passenger operators will double to £450-500m per year," said Richard Davies, strategic policy director at the Association of Train Operating Companies. He said that in time timetables would be rewritten to conserve fuel, with implications for the punctuality of services.

In the bus industry one of the largest remaining independent operators urged the government to help with "horrendous" rises in fuel costs. Peter Shipp, chairman of Hull-based EYMS wants bus operators to pay less duty on fuel. "It is most unfair to bus passengers that the duty for trains is less [than for buses] and airlines pay no duty at all," he said.

Peter Huntley, the managing director of bus company Go North East, is meanwhile calling on bus operators around the country to join him in a discussion about the opportunities and threats to the bus industry brought about by the current fuel crisis.

With the current fuel crisis showing signs of producing an upturn in bus passenger numbers, Huntley believes the time is right for the bus industry to grasp the opportunities this presents.

Based on the 'bring a bottle' party idea, Huntley has written to 22 bus operators asking them to join him for the seminar in Birmingham on September 4 and to bring with them new and innovative ideas to help keep passenger numbers rising. Those who bring along workable ideas will be able to attend the seminar free of charge while any who arrive empty-handed will be invoiced for the full cost. "Recently I have been discussing with colleagues around the country the opportunities and threats to our industry brought about by the current fuel crisis and I found that there was a great deal of enthusiasm to explore this further," explained Huntley. "It struck me that there must be many good ideas out there and that by working together we could find a way to work these up to the benefit of us all."

The format of the seminar will be very informal and Huntley is seeking participation from staff at all levels. For example, one Go North East driver suggested the introduction of 'Bus Doctors', which saw drivers and service delivery managers taking to the streets with placards inviting people to talk to them about their bus services. It proved to be so popular that 'Bus Doctor' sessions are still held on a regular basis.