Congestion costs Melbourne and Sydney drivers more than $4500 a year, study finds

Traffic is costing full-time drivers in Australia’s biggest cities thousands of dollars a year in lost time and fuel, according to new analysis for iSelect’s Delayed Drives report.

Across the 11 largest cities, commuters who drive to work collectively lose about 212 million hours a year in traffic and spend another $462 million in extra fuel.

The estimated cost to the economy is $9.7 billion, based on the lost opportunity cost – ie the loss of potential gain due to congestion.

In total, therefore, traffic is costing drivers more than $10.1 billion annually.

CarExpert can save you thousands on a new car. Click here to get a great deal.

On a per-driver basis, the study finds the average full-time worker in Australia’s major cities loses around 59 hours a year to traffic, or roughly two and a half days, at an average annual cost of about $2788 in time and fuel.

Key metric Figure
Total time lost in traffic (11 cities) ~212 million hours per year
Total annual congestion cost Just over $10.1 billion
Average per full-time driver (major cities) ~59 hours a year (~2.5 days)
Average per-driver cost Around $2788 a year
Most expensive city for drivers Melbourne – $4628 a year, 3d 22h lost
City with most time lost Sydney – $4568 a year, 4d 0h 25m lost
Least impacted city Darwin – $1390 a year, 1d 3h 32m lost
Highest cost occupation Medical practitioners – $6784 a year

Using TomTom traffic data, ABS Census commuting patterns, median hourly earnings, and real-world fuel consumption, the analysis compares how congestion hits drivers in each city’s CBD and wider metro area.

On cost, Melbourne comes out worst. The typical full-time driver there loses 3 days, 22 hours and 5 minutes to traffic each year, with an estimated annual congestion bill of $4628, made up of about $4457 in lost time and $171 in extra fuel.

Sydney drivers lose slightly more time to traffic overall, at 4 days and 25 minutes per year, but slightly less money, at $4568 a year in combined time and fuel costs. Most of that is the opportunity cost of time, at around $4406 a year, plus $162 in extra fuel.

Perth, Brisbane and Adelaide round out the top five cities on annual congestion cost, each above $3300 a year for time and fuel combined. At the other end of the scale, Darwin drivers lose about 1 day, 3 hours and 32 minutes a year to traffic, at a cost of around $1390.