Australia will roll out free public transport in two states to ease pressure on households as fuel prices increase due to supply risks linked to the Middle East conflict. The announcement comes as the government seeks to manage disruptions and rising inflation concerns.
Residents in Victoria will get free access to public transport for one month starting March 31, according to a state government statement. In Tasmania, fares for buses and ferries will be removed from March 30 until July 1, the state administration said.
The steps come amid growing fuel supply concerns across the country. Several hundred service stations have reported shortages, while delivery disruptions have been flagged in sectors such as agriculture and mining.
Prime Minister Anthony Albanese said on Friday that near-term supply remains stable as he addressed concerns among households and businesses.
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Fuel Costs Add to Inflation Pressure
Rising fuel prices are also adding to inflation risks for the central bank. Price pressures had already been building before the latest supply shock linked to the Middle East conflict.
The Reserve Bank of Australia recently raised its key cash rate to 4.1%, with the decision dividing its board. Market traders are now fully pricing in two more rate hikes this year as inflation concerns persist.
In response, the government on Saturday announced new measures to strengthen fuel security. These include plans to support private sector fuel purchases from the international market. The proposed measures are expected to be introduced in parliament on Monday.
(With Bloomberg inputs)
Residents in Victoria will get free access to public transport for one month starting March 31, according to a state government statement. In Tasmania, fares for buses and ferries will be removed from March 30 until July 1, the state administration said.
The steps come amid growing fuel supply concerns across the country. Several hundred service stations have reported shortages, while delivery disruptions have been flagged in sectors such as agriculture and mining.
Prime Minister Anthony Albanese said on Friday that near-term supply remains stable as he addressed concerns among households and businesses.
(Join our ETNRI WhatsApp channel for all the latest updates)
Fuel Costs Add to Inflation Pressure
Rising fuel prices are also adding to inflation risks for the central bank. Price pressures had already been building before the latest supply shock linked to the Middle East conflict.
The Reserve Bank of Australia recently raised its key cash rate to 4.1%, with the decision dividing its board. Market traders are now fully pricing in two more rate hikes this year as inflation concerns persist.
In response, the government on Saturday announced new measures to strengthen fuel security. These include plans to support private sector fuel purchases from the international market. The proposed measures are expected to be introduced in parliament on Monday.
(With Bloomberg inputs)
