Overview
The cost of living crisis is only increasing for Australians, as fuel shortages from the Iran War cause rolling supply impacts that are hitting hard, leaving Aussie drivers dry in both their tanks and their wallets. With no end to the shortages in sight, drivers are looking to their state governments for support. With global watchdogs urging consumers to do everything they can to avoid getting behind the wheel in the first place, the logical first step would be to make public transport alternatives more accessible.
That ball has indeed started to roll, with the Victorian and Tasmanian governments announcing a temporary freeze on public transport fares as the pumps struggle to keep up with demand. In Victoria, where the cheapest fuel at the time of writing is $2.57 a litre (20 cents up from a week ago), all metro and regional V/Line trams, trains and buses are free to ride from tomorrow until the end of April. In Tasmania, where prices average at $2.59 at the time of writing, buses and Derwent River ferries are free from now until Wednesday, July 1.
It's not a national shift, though. On Sunday, NSW Transport Minister John Graham said NSW will not offer free public transport, citing concerns that the state would lose "millions of dollars every single day" if transport were to be made free.
Those millions have to be reserved for maintaining NSW's public transport network and for the long term, according to Graham, who reasoned that NSW needs to "keep the powder dry to be able to assist the broader economy." This morning, NSW State Treasurer Daniel Moukhey told 2GB that the government wants to avoid what he called an "expensive" knee-jerk reaction to the situation. The Victorian government did admit that the month without fares would result in $71 million in revenue being lost.
Another hard no came through in Western Australia, where Premier Roger Cook says fares are already at a historic low, with these prices comparable to the 1980s, when "Rick Astley was at the top of the charts". In South Australia, Infrastructure and Transport Minister Joe Szakacs has yet to announce fare cuts, but has said the state is preparing a "broad suite of policies" to address costs. And no comment from Queensland either, where fares are admittedly an enormously low 50 cents.
James Gourley/Getty
In NSW, the decision has not been received with universal support. NSW Opposition Leader Kellie Sloane believes transport should at least be free for the Easter weekend. Meanwhile, the Rail, Tram and Bus Union, which had already called out for free transport before the state government's rejection, told the ABC that "the NSW Government has a responsibility to act", citing a need for extra services to meet demand and that the network has "plenty of spare capacity."
Data from The Guardian reveals that, despite all this, NSW residents are not driving less or using public transport more — in fact, Opal Card tap-ons have decreased since February. Similarly, data from Melbourne indicates little to no change in commuter habits, despite advice to work from home whenever possible, as the global supply network struggles to adapt and the cost of living is expected to rise further for Australians.
When fuel prices rise, freight companies add fuel surcharges to the cost of the goods shipped. So while commuters will continue to pay for getting anywhere, they'll start to notice price increases on groceries, dining out, rideshare services, parcel delivery and their morning coffee — inflation as a whole could increase from the current figure of 3.7 percent to five percent by June (according to forecasts from AMP), that double the chances of a recession in Australia this year to 30 percent.
Images: Getty
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