Fuel bills between $330 and $400 for average Aussie drivers are the highest ever
Fuel costs in Australia have increased by 40 per cent in the 12 months to April this year. This makes up nearly one-fifth of national household income.
While the federal government has provided some relief for drivers 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, as well as lingering supply and demand effects from the COVID-19 pandemic.
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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 no states or territories were immune to spiking petrol and diesel prices, which can still exceed $2 per litre in some areas.
“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.
However, neither the Coalition nor Labor has committed to extending the excise cut beyond the current six-month relief measure as the federal election looms.
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