Personal Cost of Auto Travel in Kuwait

Abstract

The number of autos continues to grow worldwide, in general, and in the oil-rich nations of the Persian Gulf, in particular. To most auto users, the associated cost of auto travel is that of the perceived out-of-pocket cost: The cost of fuel, service, and monthly maintenance. Absent from these costs are those of the capital depreciation, insurance, registration and inspection, parking, tire change, accidents, health, and environmental costs. A review of the related literature points to a total lack of information on the personal cost of auto travel in the nations of the Middle-East Region. This research study attempts to narrow this informational gap. Data on auto costs were collected from a systematic-random sample of 2,000 auto owners/operators in the State of Kuwait. These included the cost of insurance and registration, capital, book salvage value, fuel, oil change and service, repair and maintenance, and tire change. The cost of parking was excluded from the cost analysis, because parking is provided in all government and private sector organizations free of charge. The personal cost of auto travel in Kuwait was then computed via a life-cycle cost model, and the interrelationships between the level of auto use and auto costs were also examined. A number of recommendations are included at the end of this paper.