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Is free public transport a good idea? It depends on who gets on board

25 0
02.04.2026

Petrol prices in Australia have risen sharply over the past six weeks. In early February, prices in major cities were around 160–180 cents per litre. By mid-March, they had increased to approximately 230–240 cents per litre.

More recent reports indicate prices have risen further, exceeding $2.50 per litre on average, with some locations approaching $3 per litre. Despite the government cutting fuel excise and prices dropping slightly, petrol is still well above 200 cents a litre.

In response to rising prices , some states have introduced free public transport. From March 31 to April 30, travelling around Victoria will be free. Tasmania has similarly introduced free bus and ferry travel.

Queensland already operates heavily subsidised fares, with a flat 50-cent fare across its network introduced in 2024.

Other states, including New South Wales, have not introduced fare relief measures. NSW Premier Chris Minns has ruled it out, arguing the fiscal cost would be substantial if fuel prices remain elevated for an extended period, and that short-term fare relief is difficult to sustain.

But, to what extent do free or heavily discounted public transport fares change travel behaviour during this time? Do they reduce petrol demand? And how evenly are the cost-of-travel benefits distributed across the population?

Who’s getting on board?

The free public transport measures introduced by Victoria and Tasmania aim to achieve........

© The Conversation