Surging transport costs are hurting the hip pocket of Melbourne families, with a new report showing households are forking out almost $400 a week to move around the city.

The Australian Automobile Association’s latest transport affordability index shows Melbourne is the nation’s second most expensive city for everyday travel.

Modelling shows a whopping 15.2 per cent of the typical annual pay check goes to transport in the city and recent price pain has been driven by fuel, car loan payments and comprehensive insurance.

The city’s petrol cycle peaked this week as some retailers pushed prices as high as $1.74 per litre as

RACV’s general manager of public policy, Bryce Prosser, said Victorians could manage rising costs by planning ahead.

“One way to reduce transport expenses is to be savvy with petrol prices,” he said.

“This means to top-up when the fuel price cycle is at the highest, then fill up your tank when prices drop.

“By following this simple practice, households can save several hundred dollars a year on their petrol bill.”

Mr Prosser said the typical Victorian household was paying an extra $12.66 per week on transport compared to last year.

“This is a heavy burden for Victorian families and these cost pressures need to be considered when governments are formulating policy,” he said.

Melbourne is the most expensive city in Australia for car loan payments but among the cheapest for servicing and roadside assistance.

Registration, licensing and toll costs rose on July 1 with the start of the financial year.

In his latest report, AAA managing director Michael Bradley said cost pressures had recently stabilised but were still rising above the rate of inflation.

“Transport is a significant and unavoidable cost to households,” he said.

“Governments at all levels must continue to focus on ways to reduce pressure on household budgets.”

The national average for transport costs across Australia was $324 per week.

Families in Geelong enjoyed some relief over the past three months as the average petrol price fell to $1.37 per litre, cheaper than every capital city.

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