The government wants to gain additional powers to take on part of the financial risks if necessary.
In two states of Australia, public transport will temporarily be made free to mitigate the impact of rising fuel prices amid the ongoing conflict in the Middle East.
In Victoria, passengers can use public transport for free throughout April, Bloomberg reports. In Tasmania, travel on buses and ferries became free as of July 1.
Meanwhile, Australia is facing the risk of fuel supply disruptions. Several hundred gas stations have already reported shortages of gasoline and diesel, and delays in fuel delivery have affected agriculture and the mining sector. However, Prime Minister Anthony Albanese stated on Friday that a serious shortage is not expected in the near future and attempted to reassure the concerned population and businesses.
The rise in fuel prices simultaneously complicates the fight against inflation. Price pressures in the economy intensified even before supply disruptions began to be felt domestically. At the last meeting, the Reserve Bank of Australia raised the key interest rate from 3.85% to 4.1% – a decision that caused disagreements within the board of directors. Market estimates suggest that the regulator may raise the rate two more times before the end of the year.
Australian authorities have also announced new measures to strengthen fuel security. The government wants to gain additional powers to take on part of the financial risks of private companies when purchasing fuel abroad if necessary. Currently, such deals are made by businesses independently and without direct government guarantees. A corresponding package of measures is planned to be submitted to parliament.
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