Refining petroleum fractions containing heterocyclic sulphur compounds to produce sulphur-free fuels, requires efficient desulphurisation methods. A new biocatalyst has been synthesised by immobilising Pseudomonas aeruginosa cells on polyvinyl alcohol by adsorption for hydro-cracked light gas oil bio-desulphurisation. The surface functional groups and biocatalyst morphology have been investigated by Fourier transform infrared spectroscopy and scanning electron microscopy. The bio-desulphurisation of dibenzothiophene as a heterocyclic sulphur model compound of gas oil was achieved with an aqueous-oil ratio (v/v) of 50 %, where the removed mass was 0.3826 mg per gram of biocatalyst at equilibrium condition, bio-desulphurisation rate of 0.375 h–1 and removal percentage was 95.65 %. The biodegradation of dibenzothiophene and its derivatives in hydro-cracked light gas oil has been determined after a batch process using 0.5 g of the biocatalyst after 5 h of contact time at 37 °C. According to gas chromatography - mass spectrometry, ethyl and trimethyl derivatives of dibenzothiophene have been degraded by higher efficiencies in comparison with other derivatives. Also, thiophenes and mercaptans of the gasoil sample have been degraded simultaneously to some extent. Equilibrium data have been observed to obey the pseudo-first-order kinetic model. The cell immobilisation facilitates the interaction of surface functional groups with sulphur compounds. The synergistic effect of cell immobilisation on the bio-activity of bacterial cells was due to the maintenance of the heterotrophic, bacillus morphology of the cells after immobilisation. This approach provides a simple, economical method with mild operating conditions to produce low-sulphur light gas oil through the biodegradation of heterocyclic sulphur compounds.