Fuel prices continue to put financial pressure on Australian households

Fuel prices continue to put financial pressure on Australian households

New data shows Australian households are spending more on their weekly commutes, but motorists in some cities are spending more than others.

Australians continue to spend more money on weekly transport expenses through increases in taxes, interest rates, inflation and fuel prices.

The latest figures from the Australian Automobile Association show that the average household spends $381.06 on transport every week – up from $367.63 in the same period in 2021.

The AAA — the umbrella body representing automotive associations such as the NRMA, RACV, and RACQ — released the data from July through September 2022 (the third quarter of the year) and includes the average cost of public transportation, car loan payments, insurance, maintenance and tires, roadside assistance, Registration and liability insurance, registration, tolls and fuel.

For the second consecutive year, motorists in Alice Springs were hit by the largest increase of any Australian capital and regional centre, with the average weekly budget increasing by $7.26 to $377.85.

Most households spend around 15 per cent of their income on transport each week, although figures show that Hobart and Launceston residents spend an average of 18 per cent – the highest in the country.

Although fuel prices fell towards the end of the three-month period – just before the fuel excise tax returned to its full rate after a nine-month grace period introduced by the previous federal government – Australian households are spending almost $20 a week more on fuel than Australia last year at the same time.

“The Affordability Index continues to show that transportation costs are a significant drain on household budgets,” AAA Chief Executive Michael Bradley said in a statement to the media.

“The latest figures are a timely reminder for governments to carefully review policies that could increase cost of living pressures both in the region and in Greater Australia.”

Ben Zechariah

Ben Zachariah is a veteran Melbourne-based writer and motoring journalist who has worked in the automotive industry for over 15 years. Previously a truck driver, Ben completed his MBA in Finance in early 2021. He is considered an expert in the field of classic car investments.

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