Reducing fuel price volatility for NSW trains and buses

Our approach

After extensive consultation with both TfNSW and Sydney Trains, TCorp analysed the risk involved with fuel pricing and recommended a hedging plan that has stabilised the fuel costs of both organisations. In particular, the use of derivatives has allowed both transport entities to manage their budgets.

TCorp has an important and ongoing role in assisting TfNSW and Sydney Trains to implement a series of ‘oil swaps’, that minimises their exposure to swings in the oil price.

By hedging this risk, TfNSW and Sydney Trains are protected against the adverse impacts of spikes in the oil price, including during periods when geopolitical events and supply shocks cause increased volatility.

Together, we have worked collaboratively to identify, quantify and efficiently manage this pricing risk and protect the state from market fluctuations.

Client feedback

“By working with TCorp, we have successfully minimised exposure to fuel price spikes. This strategy has not only protected TfNSW and Sydney Trains from the adverse impacts of fuel price volatility but also ensured budget certainty. We are proud of the work we have accomplished together and thank TCorp for its trust and partnership in this important initiative.”

Inira Muratovic
Executive Director Financial Accounting and Control
Transport for NSW