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Two Australian states to offer free transport as fuel prices rise
Published Mar 29, 2026, 10:45 AMUpdated Mar 29, 2026, 10:45 AM
The states of Victoria and Tasmania will temporarily offer free public transport to ease the effects of rising fuel costs.
PHOTO: REUTERS
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 e-mailed statement from the state government. 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. Australian Prime Minister Anthony Albanese said on March 27 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 per cent at its latest meeting, a decision that split the board. As at March 26, traders are fully pricing two more RBA rate hikes in 2026.
Australia announced new powers to shore up fuel security on March 28, 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 March 30. BLOOMBERG