The cost of traffic congestion

December 18th, 2012 by INRIX Europe

(click on report cover to download as a PDF file to your computer)

A report, ‘The economic costs of gridlock‘, by INRIX®, a leading international provider of traffic information and driver services, and the Centre for Economics and Business Research (Cebr), finds that traffic congestion costs Britain’s economy more than £4.3 billion or approximately £491 per car commuting household.

These costs are a result of the direct impact of traffic on drivers in terms of wasted time and fuel as well as indirect costs to U.K. households resulting from businesses passing these same costs on to consumers in the form of higher prices.

Direct Costs:

  • Fuel: Over £426 million is wasted on fuel alone, which equates to £52 worth of fuel cost per-car commuter for 8.2 million British commuting drivers
  • Time: Time is money, the average cost of time wasted in gridlock per commuter equates to £331 – that’s a total national time cost of £2.7 billion

Indirect Costs (rising cost of goods and services):

  • Household Goods: 19% of traffic during the daily commute is business or freight vehicles and as a result over £1.1 billion indirect costs are passed on to British households each year
  • Per Household: Gridlock costs each British household living in urban areas £107 annually due to the increased cost of goods and services passed on by British businesses

Vehicles stuck in traffic heading to the St. Peter Port waterfront at 9.20 am (click image to expand - ©RLLord)

“Traffic congestion impacts everything from how long it takes us to get to work and the amount of fuel we consume in our vehicles to the costs of food at the grocery store,” said Bryan Mistele, CEO of INRIX.

“As the U.K. continues facing times of austerity and high unemployment, the study indicates the efficient movement of people and commerce across our road networks is essential to fostering a healthy, vibrant economy.”



  1. No Comments

Have your say