Cars vs public transport
Yesterday I noted RNZ had just quoted an Auckland Transport claim about the cost of driving that was implausible on the face of it, and didn’t seem to have done any checking or provided any explanation. Today, the same story is in the Herald, with the same lack of explanation.
Here’s the RNZ quote; the Herald one is almost identical
Auckland Transport said before the Iran conflict began late last month, the cost of public transport was roughly the same as the cost of driving a vehicle with single occupancy in Auckland.
It’s now costing people nearly double to drive their own cars.
“The cost of petrol has risen at least 50 cents per litre since then, with a 15-kilometre single person commute now costing roughly 80 cents per kilometre, which is equal to about $12 for the total trip.”
So where does this come from? In comments to yesterday’s post, David Welch pointed me to the IRD page on the cost of driving. The “Tier 1” cost in 2024-5 was $1.17/km for petrol cars. That’s higher than 80c/km, and it’s also not the right comparison — it’s an average cost per km. That is, it includes a per-km share of the fixed costs of having a car. Auckland Transport are (or should be) talking about just the extra per-km cost of using the car to commute. Taking a bus won’t make your car loan go away.
The IRD view on the cost of running a car is their “Tier 2” number, which is only 37c/km. That, interestingly, is close to half the 80c/km that Auckland Transport is claiming. Since they say that this is double what last year’s cost was, their estimate of last year’s cost is interestingly close to the IRD Tier 2 value and might come from the same methods?
I found an estimate of national average petrol prices as $2.66/L from December last year. That would be an increase of 44c/L compared to the one Auckland station I checked yesterday. If, instead, we take Auckland Transport’s “at least 50c/L”, the increase in running costs would be 5c/km for a vehicle that gets 10 km/L, and less than that for a more typical single-commuter vehicle, so again we can’t get the AT figure.
Even without trying to work out and replicate their calculations, however, we can say one simple thing. Petrol prices have not yet nearly doubled, so they can’t have caused driving costs, however defined, to have nearly doubled.
On the other hand, the conclusion that people should consider switching to public transport is true: we want to save the potentially scarce supply of oil for people and industries who don’t have any alternatives.
Update: Greater Auckland have also reprinted the claim from AT, again without comment.



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