Two Australian states will temporarily offer free public transport to ease the effects of rising fuel costs, as prolonged hostilities in the Middle East increase supply risks.
Residents in Victoria will not be charged for public transport for one month from March 31, according to an emailed statement from the state government.
We're making public transport free for a month to take pressure off the pump.
— Jacinta Allan (@JacintaAllanMP) March 28, 2026
It won't solve every problem, but it is an immediate step I can take to help Victorians right now. pic.twitter.com/lWyLJLJVzC
Tasmania will remove fares for buses and ferries from March 30 to July 1, its administration said in a media release.
Australia faces elevated fuel supply risks, with several hundred service stations reporting shortfalls, and disruptions in delivery reported in the agriculture and mining sectors. Prime Minister Anthony Albanese said on Friday that near-term supply is secure, as he sought to reassure skittish households and businesses.
Higher fuel costs are also complicating the inflation outlook for the central bank. Price pressures had already increased before the supply shock of the Middle East war. The Reserve Bank of Australia raised the key cash rate to 4.1% at its latest meeting, a decision that split the board. As of Thursday, traders are fully pricing two more RBA rate hikes this year.
Australia announced new powers to shore up fuel security Saturday, including plans for the government to underwrite private sector purchases from the international market. The latest measures are set to be introduced into parliament on Monday.
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