Public Transit Users Save More Than $8,400 Per Household Even With Dramatic Dip In Gas Prices

December 4 , 2008

APTA contacts:

Mantill Williams
(202) 496-4869
mwilliams@apta.com

Virginia Miller
(202) 496-4816
vmiller@apta.com

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WASHINGTON, DC – Even though the price of gas has continued to drop public transportation riders still enjoy a significant economic savings.  A person can achieve an average annual savings of $8,416 per year by taking public transportation instead of driving, based on today’s gas prices and the average unreserved parking rate, according to the American Public Transportation Association’s (APTA) “Transit Savings Report.”  The report is a monthly analysis that shows the average annual savings represents almost a third more than the average amount a household pays for food in a year, according to the Food Institute ($6,111). 

Even with gas prices $1.25 lower than last year, public transportation users still receive a dramatic economic savings over those who commute by automobile.  APTA’s monthly “Transit Savings Report” shows how much a person can save on a monthly or yearly basis by taking public transportation and living with one fewer car in his or her household.  The report reminds commuters that taking public transportation is the quickest way to save money compared with the overall driving costs of commuting by auto or light truck.

On average, according to the 2008 Colliers International Parking Rate Study, the national average for the monthly unreserved parking rate in a city’s downtown business district is $143.  Over the course of a year, parking costs alone can amount to an average of $1,720.

“Americans have figured it out,” said William W. Millar, president of APTA.  “Riding public transportation is great for the pocketbook.  In these uncertain economic times public transportation enables commuters to save their hard-earned money.  In addition, it reduces America’s dependence on foreign oil and reduces the amount of carbon put into the air.”

The report calculates the monthly savings for public transit users at $701 per month based on today’s gas price of $1.803 as reported by AAA. 

The top 20 cities with the highest transit ridership are ranked in order of their transportation savings based on the purchase of a monthly public transportation pass and factoring in today’s local gas prices and the local monthly unreserved parking rate.*

Top Twenty Cities – Transit Savings Report

Based on gasoline prices as reported by AAA on 12/3/08

Methodology

APTA calculates the average cost of taking public transit by determining the average monthly transit pass of local public transit agencies across the country.  This information is based on the annual APTA fare collection survey and is weighted based on ridership (unlinked passenger trips).  The assumption is that a person making a switch to public transportation would likely purchase an unlimited pass on the local transit agency, typically available on a monthly basis. 

APTA then compares the average monthly transit fare to the average cost of driving.  The cost of driving is calculated using the 2008 AAA average cost of driving formula.  AAA cost of driving formula is based on variable costs and fixed costs.  The variable costs include the cost of gas, maintenance and tires.  The fixed costs include insurance, license registration, depreciation and finance charges.  The comparison also uses the average mileage of a mid-size auto at 23.4 miles per gallon and today’s price for self-serve regular unleaded as recorded by AAA at $1.803 per gallon.  The analysis also assumes that a person will drive an average of 15,000 miles per year.  The savings assume a household gives up one car.

In determining the cost of parking, APTA uses the data from the 2008 Colliers International Parking Rate Study for monthly unreserved parking rates for the United States.

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APTA is a nonprofit international association of more than 1,500 member organizations including public transportation systems; planning, design, construction and finance firms; product and service providers; academic institutions; and state associations and departments of transportation. APTA members serve the public interest by providing safe, efficient and economical public transportation services and products. APTA members serve more than 90 percent of persons using public transportation in the United States and Canada.