The Impact of Oil and Natural Gas Price Volatility on the Transport Sector: Economic Implications and Policy Perspectives
Purpose: The aim of this study is to examine the impact of oil and natural gas price volatility on the transport sector, with particular emphasis on operational costs, competitiveness, and strategic decision-making across key transport modes, including road, rail, maritime, and aviation. Design/Methodology/Approach: The study employs a sectoral and comparative analysis based on secondary data sources, including reports from international institutions and existing academic literature. The research integrates statistical insights and literature review to assess the sensitivity of transport systems to fluctuations in energy prices and to identify adaptation mechanisms used by transport operators. Findings: The results indicate that volatility in oil and natural gas prices significantly affects transport operating costs, pricing strategies, and market dynamics. High fuel price instability increases financial risk, disrupts logistics planning, and influences modal competitiveness. At the same time, it accelerates the adoption of fuel-efficient technologies, alternative energy sources, and operational optimization strategies. The effects vary across transport modes depending on their energy intensity and level of dependence on fossil fuels. Practical Implications: The findings highlight the importance of price stability for effective financial and operational planning in the transport sector. The study provides insights for policymakers and industry stakeholders on the need to support energy diversification, improve resilience of transport systems, and promote sustainable infrastructure investments in the context of energy transition and environmental regulations. Originality/Value: This paper contributes to the literature by providing a comprehensive and sector-specific overview of the economic and strategic implications of energy price volatility in transport. It integrates perspectives across multiple transport modes and links market dynamics with policy and sustainability considerations.