MCU14/0106 Appendix J - Retail Needs Assessment

In essence, this value can be considered conservative and will under-estimate the actual value of time
savings as people place a higher value on leisure time. Workers will only work up to a point where the
marginal utility of wages earned is equivalent to the marginal utility they derive from leisure time. This is
the reason, for instance, behind higher hourly rates for over-time and holiday pay. So the average value
that people put on their leisure time may be higher than the average wage.

9.3.2        FUEL SAVINGS
Reduced distances travelled in vehicles result in fuel savings to the household. Fuel savings are
determined using average litres of fuel consumed by passenger vehicles from the ABS Survey of Motor
           10
Vehicle Use .

The cost of fuel adopted for this analysis is based on the average price of unleaded petrol for
                                                                        11
Queensland, as reported by the Australian Institute of Petroleum (AIP) as at 5 October 2014.

Petrol price forecasts are based on forecasts by the US Department of Energy for motor vehicle fuel,
applied to Australia retail petrol prices.

The value of fuel savings in 2018 for Noosa Civic trade area residents is between $1.3 million and
$5.3 million, as shown in Table 9.4 below.


User Fuel Savings
NOOSA CIVIC EXPANSION, 2018 ($2014)                                                                                      TABLE 9.4
                                                                Unit           Low Bound                 High Bound
Total trips diverted                                   (1)      (No.)               83,250                   333,000
Distance saved                                         (2)      (Kms)            9,478,100                37,912,300
Fuel price                                             (3)      ($/litre)              1.28                      1.28
Fuel consumption                                       (4)      (litre/km)             0.11                      0.11
Value of fuel savings            (5) = (2) x (3) x (4)          ($)              1,321,800                 5,287,400
1. Figures have been rounded.
Source : ABS ; US Department of Energy ; AIP ; Urbis



9.3.3        VEHICLE MAINTENANCE SAVINGS
Savings in vehicle maintenance costs will also accrue to households as a result of reduced travel
distances. This covers vehicle maintenance (i.e. servicing and repairs) and wear and tear on tyres etc.
(i.e. depreciation). Average vehicle maintenance costs of $0.0881/km are assumed, based on the RACQ
                              12
Vehicle Running Costs 2014 .

The value of fuel savings in 2018 for Noosa Civic trade area residents is between $835,100 and
$3.3 million, as shown in Table 9.5 below.




10
   Australian Bureau of Statistics (2012) cat. 9208.0, “Survey of Motor Vehicle Use”.
11
   Australian Institute of Petroleum (2014), “Weekly petrol prices report, week ending 5 October 2014”, accessed from,
   http://www.aip.com.au/pricing/pdf/Weekly%20Petrol%20Prices%20Report%20-%2005%20October%202014.pdf
12
   RACQ (2014), Vehicle Running Costs, access from
   http://www.racq.com.au/~/media/pdf/racq%20pdfs/cars%20and%20driving/cars/0714_vehicle_running_costs.ashx




URBIS
NOOSA CIVIC - RETAIL NEEDS ASSESSMENT DEC 2014 MASTER - FINAL                            TRAVEL, TIME AND ENVIRONMENTAL BENEFITS   129