Rising transport costs affecting Melbourne households
Transport costs have risen in the past 12 months, with the price of petrol, car loan repayments and other travel expenses putting a strain on household budgets. See what we’re spending.
VIC News
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Rising transport costs are draining hundreds of dollars from the family budget, with Melbourne households now paying $15.45 more to move each week than they did last year.
The latest Transport Affordability Index by the Australian Automobile Association shows the typical family now spends $20,787 each year just to travel around the city.
Fuel prices were found to be one of the biggest problem areas for hip pockets and annual petrol costs have increased to $3841.76.
Melbourne was the second-most expensive city for transport in Australia after Sydney.
It comes as fuel costs peaked in Victoria over the weekend and currently sit as high as $1.65 a litre in metropolitan areas.
RACV’s manager of vehicle engineering Michael Case said car loan payments and petrol prices had recorded the biggest increases.
“Prices in Melbourne are currently near the top of the cycle … so motorists should avoid filling up,” he said.
“Anyone considering buying a vehicle should consider not just the purchase price, but the additional costs of owning a vehicle.
“They should top-up to keep their tanks half full and not risk running out of petrol, then fill up when prices drop.
“Follow this simple practice and households can save several hundred dollars a year on their petrol bill.”
The affordability study calculates the burden of weekly costs such as road tolls, while also factoring in less frequent expenses such as insurance and registration.
Melbourne was found to the most expensive city in the nation for comprehensive car insurance, but among the cheapest for roadside assistance and servicing.
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Australian Automobile Association managing director Michael Bradley said transport costs had continued to increase well above the rate of inflation.
“The cumulative effect of continued high transport costs is a heavy burden at a time when Australians are feeling cost of living pressures across the board,” he said.
“Transport is a significant and unavoidable cost to households.
“Governments at all levels must consider these cost pressures when formulating policy.”
Fuel expenses also rose for motorists in Geelong despite the region recording one of the country’s cheapest average unleaded petrol prices at $1.42 a litre.