Public transport in two Australian states will be made free to incentivise people not to drive as fuel prices soar due to the ongoing war in the Middle East. Victoria, home to Melbourne, has announced it will have free travel throughout April, while Tasmania has stated commuters will not need to pay from Monday until the end of June. However, other state governments have so far declined to follow suit, with New South Wales indicating it was reserving funds to meet increased demand for public transport during this volatile period.
State Responses Australia is among a host of nations that have seen fuel prices increase sharply since the start of the US-Israel war with Iran and the effective closure of the Strait of Hormuz. The near-total blockade of international shipping in the vital waterway, through which around 20% of the world's oil and natural gas flows, has led governments around the world to begin implementing measures to conserve fuel immediately. Australia's Prime Minister Anthony Albanese sought to reassure motorists on Friday following reports of panic-buying and petrol stations running dry in major cities. Victoria Premier Jacinta Allan announced on Saturday that trains, trams and buses in the state would be free for all from Tuesday in a bid to drive down pressure on petrol pumps across the region. "This won't solve every problem, but it's an immediate step to help Victorians right now," she said regarding the temporary policy change. Meanwhile, the government of Tasmania announced people would be able to take its coaches, buses and ferries without charge for the coming few months to support local budgets. "We know the rising cost of fuel is impacting the family budget, and that's why we have again taken strong and decisive action to protect Tasmanians," its Premier Jeremy Rockliff said in a statement. Tasmania's transport minister also noted that paid-for school buses would be made free, saving those who use them A$20 per week according to officials. Regional Comparisons But other Australian states have demurred from similar actions due to fiscal constraints and existing fare structures. NSW transport minister John Graham told broadcasters his state was keeping its powder dry as this situation will last more than a month according to officials. South Australia said it was expanding the number of senior travel cards while absorbing higher fuel costs internally. Similarly, Western Australia Premier Roger Cook said his state had already reduced fares to assist residents facing inflationary pressures on essential goods and services. Global Impact The average price of petrol in Australia had risen to A$2.38 a litre as of last Sunday, up from around A$2.09 when the war began a month ago according to figures from the Australian Institute of Petroleum. This sharp increase reflects global market volatility rather than domestic supply issues within the nation. With only a trickle of cargo ships moving through the Strait of Hormuz without fear of being hit by Iran, there are concerns a prolonged blockage could have a wider impact on the global economy and trade routes. These rising costs have already led several other governments to implement fuel-saving measures across different regions globally.
