March 31, 2026

Two Australian states scrap transport fares amid fuel crisis

two australian states scrap transport fares amid fuel crisis
Photo source: Sky News

Two Australian states are scrapping public transport fares to help residents cope with soaring petrol prices triggered by the Middle East war, but other governments are holding back as the global fuel crisis intensifies.

Victoria, home to Melbourne, will offer free travel on all trains, trams and buses throughout April to ease the burden on drivers and keep petrol stations stocked. Premier Jacinta Allan announced the move would start Tuesday, saying “This won’t solve every problem, but it’s an immediate step to help Victorians right now.”

Tasmania has gone further, making its buses, coaches, ferries and even school services fare-free from Monday until June’s end. Premier Jeremy Rockliff explained the decision as essential family support. “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.” Families using school buses will save about A$20 weekly.

Petrol prices have surged to an average A$2.38 per litre nationwide, up from A$2.09 a month ago when the U.S.-Israel conflict with Iran escalated, according to the Australian Institute of Petroleum. The near-blockade of the Strait of Hormuz—through which 20% of global oil and gas flows—has driven up international prices, though Australian supplies remain secure.

two australian states scrap transport fares
Photo source: Sky News

Prime Minister Anthony Albanese urged calm amid reports of panic-buying, while other states take a cautious line. New South Wales transport minister John Graham said his government is “keeping its powder dry as this situation will last more than a month.”

South Australia is expanding senior cards and absorbing costs internally, Queensland cites its recent 50-cent flat fare, and Western Australia Premier Roger Cook noted prior cuts, joking “Rick Astley was top of the charts when fares were this low in Western Australia back in the 80s.”

Globally, nations are implementing curbs too. Egypt ordered early closures for shops and cafes alongside work-from-home mandates; Ethiopia furloughed non-essential staff; and the Philippines declared an emergency with driver subsidies and four-day weeks for civil servants.

Advocates see Victoria and Tasmania’s experiment as a potential blueprint for reducing car dependence, though critics worry about network strain and budgets. As the crisis drags on, more states may join the fare-free push.

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