How young Victorians are coping with the cost of living crisis

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Young Victorians are feeling the pinch of the cost-of-living crisis amid increasing fuel costs and daily living expenses as a result of the war in the Middle East.

Bowser prices sit at about $2.23 per litre for unleaded petrol and $3.29 per litre for diesel in Melbourne’s northern suburbs at the time of reporting.

Monash University research fellow Dr Lauren Pearson said household budgets were being impacted by the petrol supply and global disruptions due to Melburnians’ reliance on cars.

“Owning and running a car in Australia costs the average household roughly $20,000 a year when you factor in purchase, insurance, registration, maintenance and fuel, making it one of the biggest items in the household budget after housing,” she said.

“For the one in five Australian households that own two or more cars, the exposure is even greater.”

Sophie Whitehead, 26, lives by herself and said she has had to cut back on her driving and groceries due to financial stress.

“I barely drive now, so I don’t have to pay for fuel, and I give myself only $100 a week [for] groceries,” she said.

“Sometimes I just eat bread for dinner.”

About one in four Australians feel lonely which can cause people to experience more stress, tension or emotional exhaustion according to Lifeline’s Understanding Loneliness Fact Sheet.

Sophie said not being able to afford to fill up her car was also impacting her mental health and social life.

“It makes me incredibly stressed, and it limits my social life,” she said. 

University student Bridgette Evens-Barker lives with her partner and said they are both feeling an increase in stress.

“Both my partner's and my stress levels have gone up an incredible amount, as we are a single-income household,” she said. 

“We are lucky that my partner’s job is very well paid… but even earning above an average 21-year-old’s salary, we are struggling big time.”

The flow-on effects from pump prices to the cost of groceries and everyday expenses come amid continual demand for mental health support.

Lifeline Australia chair Professor Steve Moylan said the service had received persistent demand, with 15-18 per cent of calls since January 2025 relating to financial hardship.

“Whether it’s events overseas, cost-of-living, homelessness, violence against women or a myriad of other factors affecting people’s lives, what we are seeing is that the volume of people experiencing distress and requiring support remains elevated,” he said.

One of Bridget’s hobbies is crochet. Credit: supplied

Bridgette Evens-Barker copes by pursuing her hobbies and being there for her partner.

“I’m mostly coping by working through my large stash of hobbies that I’ve accumulated throughout the years and doing whatever I can to support the pressure my partner is under to provide for us at the moment,” she said.

Associate Professor Ben Beck, who is the head of sustainable mobility and safety research at Monash University, said there was an opportunity for other avenues of transport to replace short car trips.

“That means emergency funding to address missing links in walking and bike riding networks; expanded and subsidised bike share; subsidies for bike purchases, including e-bikes; and reduced public transport fares as incentives to leave the car at home,” he said.

The Australian government and Victorian government have introduced measures to help ease rising costs.

The federal government announced last week that it would cut the fuel excise by an additional 10.9 per cent after it legislated halving the fuel excise at the end of March for three months.

The Victorian government announced free public transport during April to take pressure off household spending.

Victorian Premier Jacinta Allan said this temporary measure would help make public transport more affordable for more people.

“This won’t solve every problem, but it’s an immediate step to help Victorians right now while we keep working on new solutions to make Victoria more affordable,” she said.

The Prime Minister and National Cabinet have said they would continue to engage with international counterparts and expected to announce more measures over the coming days and weeks.

If you or anyone else you know is experiencing a crisis, call Lifeline on 13 11 14.

For more information about depression, anxiety or suicide, contact headspace at headspace.com.au or talk to someone you trust.

In an emergency, call 000.