Two Australian States Roll Out Free Transport As Iran War Pushes Fuel Prices Higher

Last Updated:March 30, 2026, 11:10 IST

Victoria, home to Melbourne and Tasmania said trams and buses will be free throughout April.

As the global oil crisis triggered by the Iran war and the closure of the Strait of Hormuz deepens, two Australian states have announced free public transport to encourage people to avoid driving.

Fuel prices have risen sharply due to the ongoing conflict in the Middle East, pushing authorities to take steps to reduce pressure on petrol demand.

Free travel in Victoria and Tasmania

Victoria, home to Melbourne, said trains, trams and buses will be free throughout April. The move will begin on Tuesday.

State Premier Jacinta Allan said the step is aimed at easing pressure on petrol pumps. “This won’t solve every problem, but it’s an immediate step to help Victorians right now," she said.

In Tasmania, commuters will not need to pay for public transport from Monday until the end of June.

Premier Jeremy Rockliff said the decision was taken to help families cope with rising fuel costs. “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," he said.

Tasmania’s transport minister also announced that paid school buses would be made free, saving users A$20 a week.

However, not all states have followed the same approach.

New South Wales, where Sydney is located, said it would not introduce free travel for now. Transport Minister John Graham said the state is reserving funds to deal with increased demand. “This situation will last more than a month," he said.

South Australia said it would expand senior travel cards while absorbing higher fuel costs. Queensland pointed to its earlier move of introducing a flat 50-cent fare in February.

Western Australia Premier Roger Cook said fares in his state had already been reduced, noting they were at levels last seen in the 1980s.

Fuel prices across Australia

Australia is among several countries facing rising fuel prices since the start of the US-Israel war with Iran and the disruption in the Strait of Hormuz.

Around 20 per cent of the world’s oil and natural gas flows through this key route. The near-total blockade has led governments to introduce measures to conserve fuel.

According to the Australian Institute of Petroleum, the average petrol price reached A$2.38 per litre last Sunday, up from about A$2.09 a month earlier. The government has said supply is not the issue. Instead, higher global oil prices have pushed up fuel costs.

Prime Minister Anthony Albanese sought to reassure motorists after reports of panic buying and petrol shortages.

Global impact of oil disruption

With only limited shipping moving through the Strait of Hormuz due to fears of attack, there are concerns about wider economic impact if the disruption continues.

Several countries have already taken steps to deal with rising costs.

In Egypt, shops, restaurants and cafes have been told to close early. Non-essential workers have been asked to work from home one day a week, and public transport fares have been increased.

In Ethiopia, state-owned companies and public institutions have been told to place non-essential staff on leave to reduce travel.

The Philippines has declared a national emergency, offering subsidies to transport drivers, reducing ferry services and introducing a four-day work week for civil servants.

News world Two Australian States Roll Out Free Transport As Iran War Pushes Fuel Prices Higher

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