Traffic declines in Sydney and Melbourne amid fuel crisis

Many Australians are cutting back on driving amid the fuel crisis sparked by the US-Israel war on Iran, with road traffic falling significantly in Sydney and Melbourne. According to New South Wales government data, trips on Sydney’s key thoroughfares have fallen by thousands per day, with most key highways recording a 20% decrease in weekend trips. Petrol prices have risen by 50 cents a litre, while diesel has increased by 140 cents a litre since the conflict began, forcing many to seek alternatives like trains, cycling, or remote work.

Between the week ending 1 March and the week ending 5 April, traffic on Sydney’s cross-city tunnel fell 7%, and the Sydney Harbour Bridge saw average weekday trips drop from 144,000 to less than 135,000. In Melbourne, the Tullamarine Freeway experienced a 20% traffic decline during the same period, with overall traffic on major highways decreasing significantly. Transurban reported that six of its Sydney toll roads lost a combined 6,000 trips a day in the March quarter compared to the previous year, reflecting a broader trend of reduced driving.

Owen Birrell, an RBC analyst, noted that underlying traffic fell by 3.4% in March alone, suggesting a concerning trend for future months. Public transport usage surged in southeast Queensland, with daily patronage rising 7% by the end of March, indicating a shift in commuter behavior as fuel prices continue to rise.

Power Read: The decline in road traffic gives leverage to public transport systems, which are experiencing increased patronage. This shift may pressure policymakers to enhance public transport infrastructure and services, as more Australians opt for alternatives to driving. Conversely, the ongoing fuel crisis exposes vulnerabilities in the Australian economy, particularly for sectors reliant on road transport. If the conflict in the Middle East persists, further economic strain could lead to long-term changes in commuting patterns and transportation policies.

What to watch: Monitor fuel price trends and their impact on transportation choices in the coming weeks.