Fuel costs up 40 per cent over past 12 months
Average weekly fuel costs for Aussie motorists now above $400 in capital cities, or $330 in regional areasFuel costs in Australia increased by 40 per cent in the 12 months to April this year, making up nearly one-fifth of national household income.
While the federal government has provided some relief for motorists at the bowser by cutting fuel excise by 22 cents until September 28, the latest data from the Australian Automobile Association (AAA) shows average weekly household transport costs rocketed to $401.05 in capital cities, and to $330.67 in regional areas.
The AAA’s Transport Affordability Index found in the 12 months to March 31, 2022, vehicle ownership costs had spiked off the back of the war in Ukraine plus lingering supply and demand effects stemming from the COVID-19 pandemic.
According to the AAA, transport costs now comprise 14.7 per cent of average national income, up one percentage point from 2016.
That’s despite a reduction in car loan repayments (the main cost component of ownership) due to what the AAA says is “a greater proportion of new car buyers choosing cheaper vehicles”.
The AAA survey found the Tasmanian cities of Launceston (18.1 per cent) and Hobart (17.9 per cent), followed by Brisbane (17.1 per cent), had the highest transport costs as a proportion of household income.
But clearly no states or territories were immune to spiking petrol and diesel prices, which continue to hover at around $2 per litre.
“Rising fuel prices continue to be a significant contributor to cost of living pressures across both regional and metropolitan Australia,” said AAA managing director Michael Bradley.
“Fuel costs have risen an average of $26.49 to $93.87 per week over the past 12 months in capital cities with Hobart ($100.18p/wk), Sydney ($94.80p/wk), Darwin ($94.36p/wk) and Brisbane ($93.93p/wk) the most expensive cities.
“Regionally, costs are more expensive, rising on average $27.89 to $96.65 per week with Bunbury ($116.31p/wk), Geelong ($110.69p/wk – Melbourne was $92.07) and Launceston ($109.37p/wk) the highest.”
The recent cut in excise has provided some relief, although prices are still higher than $2 per litre in many areas. Diesel still appears to be heavily impacted.
Furthermore, neither the Coalition under Scott Morrison nor Labor under would-be prime minister Anthony Albanese have committed to extending the excise cut beyond the current six-month relief measure as the federal election looms.
Related: Federal budget: Fuel excise cut in half
Related: Petrol prices to dip back below $2/litre
Related: Your questions answered: What fuel should I use and how can I save money?
Related: Reports of $3/litre petrol prices in Australia ‘ludicrous’
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