Overview
When fuel pump prices began climbing earlier this year, different Australian states were willing to come to different compromises. The most immediate and generous was in Victoria, a whole month of discounted transport to ease driving costs. Love it or hate it, it was locked in until the end of April and would not be extended. Until yesterday, when the Allan government announced a long-term plan for adjusted fares.
As the economic crisis stemming from the Iran War only continues to grow, the Allan government announced that public transport will continue to be free until the end of May — and then from Monday, June 1, fares will be reduced by 50 percent until the end of the year.
The half-price fares are projected to save the average Victorian commuter $850 from June 1 to December 31, but will cost the state approximately $432 million, adding to concerns from economists about the risk of inflation this year.
Premier Jacinta Allan said on social media, "I know this won't solve every problem, but it's another step I can take to help Victorians right now." Transport Infrastructure Minister Gabrielle Williams said to the ABC, "We know that this is a really important measure to take pressure off household budgets, and it's also about taking pressure off the pump at a time when the situation in the Middle East is so precarious."
Ye Myo Khant/SOPA Images via Getty
Although fuel prices managed to creep back down when Iran temporarily reopened the Strait of Hormuz last week, it's since been closed again. Additionally, experts are concerned that local fuel prices will be affected by a fire that broke out at a Geelong oil refinery late last week, a refinery that is responsible for ten percent of Australia's fuel supply and almost half of Victoria's.
When the half-price discounts take effect, maximum fares of $11.40 will max out at $5.70, and if you've already put money on your Myki, you're eligible for a reimbursement. Fares will continue to be free for under-18s and special pass holders.
For more information on the free public transport period, visit the Transport Victoria website.