What action it has taken to encourage public transport providers to pass on the reduced costs of fuel to consumers through cheaper fares.

The Scottish Government is committed to encouraging more people to use public transport and has taken action to make fares more affordable. For example from 1 April 2015 ScotRail’s regulated peak fares increases will be capped at the level of the Retail Prices Index (RPI) instead of RPI plus one per cent. Road equivalent tariff to ferry fares currently in operation on services to Western Isles, Coll and Tiree, Islay, Gigha, Colonsay and to Arran will also be rolled out to remaining Clyde and Hebrides routes in October 2015, allowing for substantial reduced fares. In addition it is maintaining the Bus Service Operators Grant which provides an annual subsidy of around £50 million to the bus industry to help support the network and to keep fares at affordable levels. Falling fuel costs can be expected to be reflected in bus operators’ decisions on fares, though the extent and timing of this will depend on their wider costs and any fuel hedging arrangements.