Transport cost increases above national average for Victorians

Annual transport costs have risen by an average of $698 across Australia. Photo: Getty.

Transport costs rising in Australia

The Transport Affordability Index is a quarterly survey conducted by the nation’s peak motoring body, the AAA, and accounts for a wide variety of costs associated with transport, including fuel, vehicle registration, servicing, road tolls and public transport.

The regional areas surveyed across Australia as part of the report bore the brunt of rising costs, with regional cities now paying an average of $15.42 more per week for transport compared to the same time last year, while residents in capital cities are paying an average of $11.68 more per week. 

With those increases, from July to September of 2022, metro residents across Australia paid an average of $413.53 per week on transport costs, where regional residents pay $343.93.

While fuel costs were lower across the country (except Alice Springs) during the September quarter compared to the three months prior, Australians are paying on average $966 more for fuel than they did during the same time last year.

A full breakdown of the Transport Affordability Index is available on the AAA website.

Car loan repayments have increased over the last three months, growing $2.07 a week in Melbourne. Photo: Getty.

Melburnians paying more

The last quarter saw the total annual cost of transport for Melburnians rise by $137 over the past three months to a total cost of $24,109. 

In Melbourne, car loan repayments alone increased by $2.07 a week during this time, with registration, licensing, insurance, servicing and tyres, tolls, and roadside assistance also contributing to the growing transport costs which now account for 16.5 per cent of the household’s income.

Overall, Melbourne is the second most expensive Australian city to live in terms of annual transport costs, pipped at the post by Sydney ($25,255 per year). The cheapest capital city for is Hobart, with a total annual transport cost of $18,820.  

The quarter saw fuel expenditure decrease slightly, with fuel bought during this period still benefitting from the cut to Australia’s fuel excise (which returned in full on September 29).

Melbourne fuel expenditure dropped $1.94 a week from $97.29 in the June quarter to $95.35 in September. However, compared to the same time in 2021 Melburnians are still paying an extra $900 per year for fuel, though other capitals like Hobart, Darwin and Canberra are still paying more. 

Given the growing cost of transport and particularly car loans, knowing the true cost of owning any given vehicle in increasingly important for Victorians families and those on tight budgets.

RACV’s Car Running Costs Survey recently revealed the most affordable cars to run in 2022, highlighting the cheapest vehicles to own in Australia across multiple categories like small cars, SUVs, utes, and electric vehicles. 

The full fuel excise cut was in effect during the September quarter, helping decrease fuel expenditure. Photo:Getty.

Expenses increase in Geelong 

Rising costs aren’t just affecting metropolitan residents either, with motorists in Geelong also shouldering higher prices. Victoria’s second biggest city is now also the second most expensive regional centre in Australia for transport costs, beating out Bunbury with a total annual transport cost of $18,931.  

Geelong residents pay a weekly average of $116.98 for fuel, with regional towns like Mount Gambier, Launceston, Alice Springs and Bunbury all posting fuel expenditure costs higher than in any capital city.  

Like in Melbourne, Geelong residents were also hit by rising car loan payments which increased in line with the capital. 

Alice Springs remains as the most expensive regional city when it comes to transport (with an annual total transport cost of $19,648) while Wagga Wagga ($16, 107) was the cheapest.