Fuel costs mounting pressure on transport affordability across Australia
The latest edition of the Transport Affordability Index has shown that despite best efforts to ease cost of living pressures, transport costs remain stubbornly high.
Transport costs across the country have risen by $11.70 per week in the past three months, with Australian households now spending an average $379.90 per week on transport, new figures show.
The latest Transport Affordability Index shows nationally, transport costs now represent an average of 15.2 per cent of household income.
While an extra $11.70 in three months may not seem like a major increase, these gradual increases have added $74.34 to transport costs every week, or $3,865.68 per year since the second quarter of 2020.
Compiled by the Australian Automobile Association (AAA) – Australia’s peak motoring body – the survey factors in all forms of transport, mobility, and associated costs to determine the financial pressures of transportation costs for the public each annual quarter.
Fuel prices continue to be a major burden for Australians, now accounting for 26.4 per cent of transport costs, despite the Federal Government’s six-month fuel excise cut.
“Fuel prices are rising and continue to be a significant contributor to cost of living pressures across both regional and metropolitan Australia,” said AAA Managing Director Michael Bradley.
“This is the first time the national weekly average spent on fuel has passed $100 since the index’s inception in 2016.”
RACV General Manager Mobility, Elizabeth Kim, echoed the AAA’s concerns for fuel prices. “For some people, these increases will have prompted them to reconsider their choices when it comes to transport.”
“RACV is committed to providing Victorians with a choice with how they get around – whether that is by car, on a bike, walking, public transport or on an e-scooter.”
With the rising cost of fuel, more people are using the Fuel Tracker feature on RACV’s arevo journey planner app, which offers real-time petrol prices and trends to help you can find the cheapest time and place to buy petrol.
“It is not uncommon for retailers close by to be selling fuel at different rates, so it's important to keep an eye on the Fuel Tracker and include independent retailers in your searches, who can often have some price flexibility.”
A full breakdown of the costs and comparison tables are available on the AAA website.