General3/30/2026•BBC

Fuel tax halved and free public transport offered as war pushes up prices in Australia

Fuel tax halved and free public transport offered as war pushes up prices in Australia

Two Australian states will offer free public transport to incentivise people not to drive as fuel prices soar due to the war in the Middle East. Victoria, home to Melbourne, has said it will have free travel throughout April, while Tasmania has said commuters will not need to pay until the end of June. Other state governments have so far declined to follow suit. It comes as the federal government announced it would halve the nation's fuel excise tax for three months to ease pressure on motorists' wallets. Australia is among a host of nations that have seen fuel prices increase sharply since the start of the US-Israel war with Iran and the effective closure of the Strait of Hormuz. The near-total blockade of international shipping in the vital waterway - through which around 20% of the world's oil and natural gas flows - has led governments around the world to begin implementing measures to conserve fuel. Australia's Prime Minister Anthony Albanese has previously sought to reassure motorists following reports of panic-buying and petrol stations running dry. His government said on Monday that the fuel excise, a sales tax, will be lowered by 26.3 cents per litre for petrol and diesel,

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