November 5th, 2024

New Zealand households face mixed trends in transport expenditure

Weekly household transport expenditure has seen a significant rise, jumping 16.5% from $216.00 in 2019 to $251.60 by the year ended June 2023

Fuel expenses, a substantial component of transport costs, have notably increased for New Zealand families.
Fuel expenses, a substantial component of transport costs, have notably increased for New Zealand families.

Households across Aotearoa New Zealand are experiencing a mixed bag when it comes to transport expenditure, with increases in spending on private transport, petrol, and diesel, contrasting with declines in costs for short-distance bus and urban train journeys. Stats NZ's latest data reveal these nuanced shifts in transportation spending patterns.

The big picture: Overall, weekly household transport expenditure has seen a significant rise, jumping 16.5% from $216.00 in 2019 to $251.60 by the year ended June 2023. This surge underscores transport's steady share of 15.7% in total net household expenditure, illustrating its consistent impact on household budgets.

Zoom in: Fuel expenses, a substantial component of transport costs, have notably increased for New Zealand families. From 2019 to 2023, weekly petrol costs climbed by 11.1%, from $48.50 to $53.90, making up 21.4% of total weekly household transport expenditure. Diesel spending witnessed a remarkable 150% surge, from $3.20 per week in 2019 to $8.00 in 2023, doubling its proportion of total transport spending from 1.5% to 3.2%.

Details: This mixed trend highlights the evolving dynamics of household transport expenditure in New Zealand. The increase in private transport costs reflects changing preferences or necessities, possibly driven by factors like the COVID-19 pandemic's long-term impacts, shifts in work habits, or the rising cost of vehicles and fuel. On the flip side, the decline in spending on short-distance public transport options like buses and trains may indicate altered commuting patterns, an increase in remote working, or preferences for personal transport modes over public options.

  • What they're saying: Victoria Treliving, Stats NZ's senior manager for wealth and poverty statistics, pointed out the significant leap in diesel expenditure among New Zealand households, reflecting broader shifts in transport preferences and economic pressures facing families.

The bottom line: As New Zealand households navigate the post-pandemic world, their transport spending reflects broader societal shifts and the enduring importance of transportation in daily life. With expenditure on fuel and private transport on the rise, and a downturn in public transport usage, these patterns may signal lasting changes in how Kiwis commute and manage their household budgets.