OECD/ITF Joint Transport Research Centre Discussion Papers
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- Is continued by :
- International Transport Forum Discussion Papers
The International Transport Forum at the OECD is an intergovernmental organisation with 52 member countries. It acts as a strategic think tank for transport policy and organizes an annual summit of ministers. Our work is underpinned by economic research, statistics collection and policy analysis, often undertaken in collaboration with many of the world's leading research figures in academia, business and government. This series of Discussion Papers is intended to disseminate the International Transport Forum’s research findings rapidly among specialists in the field concerned.
- ISSN: 20708270 (online)
- https://doi.org/10.1787/20708270
Importance of Oil Price in Freight Transport Costs
Oil is the main component of transport fuel. As for now, however, crude oil price
(FOB-Free on board) accounts for less than a fifth of transport costs. Operating
costs, wages and taxes cause the remaining four fifths. Nevertheless, oil scarcity
may raise fuel costs to such a level that transport companies and citizen may suffer
significant adverse impacts.
A multiplication by 8 of the price of oil (compared to 2007) would double road
transport cost. Yet, the rise would be global, which would enable operators to shift
the cost to their clients without suffering changes in competition. Still, small operators
that would not be in a position to optimize truck loads and routes would be
threatened.
Major oil price rise would mainly affect two aspects of mobility: aviation and
private motoring. Air companies have added a special oil charge to ticket cost while
changes in private motoring, which uses approximately as much fuel as air per
passenger – kilometre, may lead to a situation where only the wealthiest citizens may
keep driving.
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