Alex PhillipsAnd
Tiffanie Turnbull,Sydney
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Two Australian states will offer free public transport to encourage people not to drive as fuel prices soar due to war in the Middle East.
Victoria, where Melbourne is located, announced travel would be free throughout April, while Tasmania said commuters would not need to pay until the end of June. Other state governments have so far refused to follow suit.
It comes as the Federal Government announced it would halve the national fuel excise tax for three months to ease pressure on motorists’ wallets.
Australia is among many countries that have seen fuel prices rise sharply since the start of the US-Israeli war against Iran and the effective closure of the Strait of Hormuz.
The near-total blockade of international shipping on this vital waterway – through which around 20% of the world’s oil and natural gas passes – has led governments around the world to begin implementing measures to save fuel.
His government announced on Monday that the fuel excise, a sales tax, would be reduced by 26.3 cents per liter of petrol and diesel, expected to save drivers between A$10 (£5.18, $6.87) and A$20 per fill-up.
The excise cut – which comes into force on Wednesday – will cost the Australian taxpayer A$2.55 billion.
Victorian Premier Jacinta Allan announced on Saturday that the state’s trains, trams and buses would be free for everyone from Tuesday, in a bid to reduce pressure on petrol pumps.
“It won’t solve all the problems, but it’s an immediate step to help Victorians right now,” she said.
Meanwhile, the government of Tasmania – an island off the Australian mainland – announced that people could ride its coaches, buses and ferries for free over the coming months.
“We know that rising fuel prices have an impact on the family budget, and that is why we have once again taken strong and decisive action to protect Tasmanians,” Premier Jeremy Rockliff said.
Tasmania’s transport minister also said paid school buses would be made free, saving those who use them A$20 (£10.40) a week.
But other Australian states have opposed similar actions.
NSW Transport Minister John Graham told media his state was keeping its “powder dry”. Graham said providing free public transportation would cost millions of dollars a day — money the government needs to help the state get through the crisis in the long term.
South Australia said it was increasing the number of senior travel cards while absorbing higher fuel costs, and a Queensland spokesperson pointed out it introduced a 50 cent flat rate last February in comments to SBS News.
Similarly, Western Australia Premier Roger Cook said his state had already reduced tariffs. “Rick Astley was at the top of the charts when rates were this low in Western Australia in the 1980s,” he said.
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The average price of petrol in Australia rose to A$2.38 per liter last Sunday, up from around A$2.09 at the start of the war a month ago, according to figures from the Australian Petroleum Institute.
The Australian government says supply is not a problem, but that the sharp rise in the price of oil on the international market has had a knock-on effect on the price of fuels derived from it.
With only a net of cargo ships By crossing the Strait of Hormuz without fear of being hit by Iran, there are fears that a prolonged blockage could have a wider impact on the global economy.
These rising costs have already led several other governments to implement fuel-saving measures.
Shops, restaurants and cafes in Egypt were I was told to close early starting Saturday as part of a series of measures that also included requiring non-essential workers to work from home one day a week and increasing public transport fares.
At the same time, the Ethiopian government has asked state-owned enterprises and public institutions to furlough non-essential staff from reporting to work.
Tuesday, the Philippines declared a national emergencywith his government offering subsidies to transport drivers, cutting ferry services and introducing a four-day working week for civil servants.
