Victoria and Tasmania will implement free public transport to combat rising fuel costs, with Victoria waiving fares for one month starting March 31, and Tasmania eliminating bus and ferry fees from March 30 to July 1. The measures address elevated fuel supply risks in Australia, where hundreds of service stations report shortages, disrupting agriculture and mining sectors.

Australia's inflation outlook complicates further as the Reserve Bank of Australia raised the key cash rate to 4.1% at its latest meeting, a decision splitting the board. By Thursday, traders fully priced two more RBA rate hikes this year, reflecting growing concern about persistent price pressures exacerbated by Middle East supply disruptions.

Prime Minister Anthony Albanese announced new powers to bolster fuel security, including government underwriting of private sector purchases from international markets. The measures, set for parliamentary introduction on Monday, target immediate fuel shortages while the central bank contends with inflationary pressures from both supply constraints and monetary tightening.