Millions of Victorians will receive another month of free public transport, followed by half price fares for the remainder of the year, under a new state government cost of living measure. From June 1, daily fares will be capped at $5.70, half the usual maximum, with the average commuter expected to save more than $850 over six months.

The package, which includes April's free travel, is expected to cost hundreds of millions of dollars in foregone revenue and will be a key feature of the upcoming state budget. The government said the move is aimed at easing household pressure as global conflict drives higher fuel prices.

The premier said the plan is designed to reduce reliance on cars and ease demand for petrol and diesel as supply concerns continue. Existing concessions will remain in place, with free travel continuing for those under 18 and for seniors on weekends, as the government positions the measure as immediate but not a complete solution to rising living costs.