We lose a lot of time and money whenever we get stuck in heavy traffic in Metro Manila. But have any of you ever wondered how much you actually lose?
Budget Direct recently conducted a study on the yearly costs of sitting in rush-hour traffic in different cities across the world. According to the study, the average motorist in the National Capital Region spends an astonishing 188 hours stuck in traffic annually, which is equivalent to a total monetary loss of $1,120 or roughly P56,000. Ouch.
Metro Manila ranks 131st among 418 cities listed in terms of annual costs. The city where it’s most costly to get stuck in traffic is Hong Kong ($3,555), followed by Geneva ($3,532) and Zurich ($3,463) in Switzerland. On average, the worldwide annual cost of rush-hour traffic is $1,343 per motorist. At the very least, we Filipinos are still below that average.
In terms of time spent in traffic yearly, however, Metro Manila ranks fifth overall. First is Kyiv in Ukraine (207 hours) followed by Chongqing in China, Moscow in Russia, and Istanbul in Turkey (200 hours).
The calculation used an INRIX model that factors in the hours of productivity lost and the cost of fuel in cities across the globe. The sum of the ‘value of time lost’ and the ‘extra fuel cost’ amounted to the final rush-hour traffic costs.
Budget Direct came up with the computation by using local salary data to calculate the actual value of half the time spent in traffic. This was based on studies that show motorists place a value on their time relative to salary and that they are willing to pay a premium to cut travel time. Other studies by CEBR also show that one hour in traffic equates to a 30-minute loss in productivity.
The study then used TomTom’s Global Traffic Index to get the number of hours lost to congestion. The hourly pay per city was computed based on adjusted net national income per capita by the World Bank.
“Fuel costs in each city were estimated as the cost of extra fuel needed to drive the given amount of hours in congested traffic, given the typical fuel efficiency in the corresponding country, the assumed average speed in congested traffic of 20mph/32kph, the associated 80% increase in fuel consumption, and the recent price of petrol in a given city (where possible) or country.”
If you want to see the full results of the study, you can click here. What do you think of these numbers, readers? The comments section is open.