What happens to public transport fares when the free period ends?

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Victorian public transport is free during April, with experts saying that most public transport is protected from fuel related price spikes when full fares return. 

Transport Victoria announced last week that public transport will be free for all passengers across the state from March 31 to April 30, excluding airport buses, ferries and private services. 

The initiative aims to reduce the pressure on Australian fuel reserves and help Victorians struggling with price increases due to the ongoing partial closure of the Strait of Hormuz as a result of the ongoing war in the Middle East.

Experts say fares are unlikely to change after April because much of the Victorian public transport network does not rely on fuel.

Public Transport Users Association (PTUA) spokesperson Daniel Bowen says, “a lot of the public transport network in Victoria runs on electricity… in the case of tram and metro trains, that is linked directly to renewables”. 

“They should not be affected by the rise in fuel prices,” he said. 

According to the Victorian Government, the network currently uses 4,500 public buses that run on diesel, with programs underway to convert 10 percent of the fleet to renewable energy by 2035. 

While metropolitan trains and trams are electric, all V/Line trains rely on diesel. 

Bowen said, “The government is going to need to work with the transport operators and make sure [V/Line trains and diesel buses] do have access to adequate supplies of fuel.” 

“But we are not foreseeing any rise to public transport fares,” he said. 

Since the conflict between Iranian and US-Israeli forces began in late February, fuel prices in Australia have increased about 40 percent. 

Weekly reports from the Australian Institute of Petroleum (AIP) show that in Victoria, the average fuel price rose from $1.87 per litre at the start of March to $2.53 per litre at the end.

Liam Davies, a lecturer in Sustainability and Urban Planning at RMIT, says that “public transport now becomes much more attractive” when considering fuel prices and other costs associated with car ownership. 

“If we can get people to start using public transport now during a shock, they will continue to use it into the future even when petrol pricing goes back down because it has now become the new norm,” Davies said. 

A 2024 report from Climate Council found that 47.5 per cent of Melbournians don’t have walkable access to public transport, with 27 per cent lower access in lower income suburbs. 

There are only 13 V/Line routes serving regional Victorian communities, with many of these communities relying on unreliable public bus routes for short trips. 

Davies said, “Unfortunately through decades of development patterns that have been creating automotive dependent communities, these communities [do not have] ready ability to avoid motor vehicle use.”

Prime Minister Anthony Albanese announced on Thursday that the excise for petrol and diesel will be halved until June 30, aiming to further help Australians struggling with fuel prices.

The fuel excise has been reduced from 52.6 cents to 26.3 cents per litre.

While cost of living relief measures are in place, Bowen says, “for those driving, do look at your public transport options”.