West Australians shifting gears on transportation spending amid higher petrol prices

West Australians are dodging higher petrol prices by choosing to take public transport, taxis and rideshares, new spending data suggests.

Millennials led the rise in spending on “other transport” — which include public transport, taxis and rideshare companies — in August with an 18 per cent increase in transaction volume compared with a year ago.

Total spend on “other transport” grew 15 per cent in August, with 5.4 per cent more users than a year ago.

Meanwhile, service stations recorded an 11 per cent decrease in the number of customers transacting year-on-year in August, as well as a 14 per cent drop in total spending volume.

The bank’s monthly analysis crunches the numbers on WA customer credit and debit activity to spot responses to fluctuating economic conditions.

It comes despite findings from the Australian Competition and Consumer Commission revealed earlier this month that motorists in Perth enjoyed the lowest average price in the country for petrol over the June quarter.

The consumer watchdog revealed the results in its latest report on the domestic petroleum market, showing average retail petrol prices declined by 6.5¢ per litre to 175.7¢ across the country’s five main cities.

Perth scored the lowest average price, with motorists shelling out an average of 171.5¢ per litre.

Those in Melbourne suffered the largest hit at the pump, forking out 180.1¢ a litre.

Bankwest, in its report to be released on Monday, said the latest data highlighted shifting priorities across generations, “with younger Western Australians driving growth in transport-related sectors, while older cohorts are spending more on travelling for holidays”.

The number of gen X and baby boomers transacting in travel agencies grew 12 per cent and 8 per cent, respectively, year-on-year in August.

Bankwest head of everyday products Allan Emery said the data indicated many West Aussies were rethinking how they got around, with spending shifting away from traditional car use in August.

“The 15 per cent year-on-year growth in spend on ‘other transport’ shows a strong move towards perceived convenience and value, particularly among Millennials who led the charge with an 18 per cent increase in spend,” he said.

“While service stations and auto rentals saw notable declines, Gen Z bucked the trend with an increase in auto rental spend, suggesting some younger West Aussies prefer short-term car access over ownership.

“Overall, August was a steady month for spending, but the generational shifts we’re seeing suggest deeper changes in how West Aussies are choosing to spend to get themselves where they need to go.”

Bankwest earlier this year revealed young West Australians were trading out of car ownership and shifting towards rentals as they looked to beat lingering cost-of-living pressures. Perth drivers are particularly facing higher costs of getting their cars serviced.