A person can save more than $8,000 per year by taking public transportation instead of driving based on today’s gas prices, according to new analysis released by the American Public Transportation Association (APTA). According to APTA’s “Monthly Transit Savings Report” a person can save an average of $672 dollars per month based on today’s gas price of $3.909 as reported by AAA.

Gas prices have increased by 179.9 percent since 2003 according to the Bureau of Labor Statistics. After factoring in today’s average gas price and the average transit fare, the analysis shows that a person can save $672 a month and $8,059 per year by riding public transit. The annual cost savings is almost $2,000 more than the annual cost of food, according to the Food Institute ($6,111).

“We are releasing our ‘Transit Savings Report’ once a month to remind consumers that taking public transportation is the quickest way to save money and beat the high price of gasoline,” said William W. Millar, president of APTA. “In these tough economic times, a record number of Americans are saying my other car is the train or bus and it helps me balance my budget.”

The top 20 cites with the highest ridership are ranked in order of their transit savings based on the purchase of a monthly public transportation pass and factoring in today’s local gas prices.*

Top Twenty Cities – Transit Savings Report

	City	Monthly Savings	Annual Savings
1	Honolulu	$725	$8,703
2	San Francisco	$722	$8,667
3	Las Vegas	$703	$8,441
4	Seattle	$701	$8,413
5	Los Angeles	$698	$8,371
6	San Diego	$696	$8,356
7	Dallas	$694	$8,333
8	Atlanta	$687	$8,238
9	Denver	$686	$8,230
10	New York	$685	$8,218
11	Boston	$683	$8,192
12	Minneapolis	$675	$8,104
13	Chicago	$675	$8,100
14	Baltimore	$674	$8,084
15	Cleveland	$672	$8,059
16	Portland	$670	$8,044
17	Miami	$670	$8,034
18	Philadelphia	$665	$7,986
19	Pittsburgh	$631	$7,569
20	Washington, DC	$590	$7,084

*Based on gasoline prices as reported by AAA on 7/31/08.

APTA calculates the average cost of taking public transit by determining the average monthly transit pass of local public transit agencies across the country. This information is based on the annual APTA fare collection survey and is weighted based on ridership (unlinked passenger trips). The assumption is that a person making a switch to public transportation would likely purchase an unlimited pass on the local transit agency, typically available on a monthly basis.

APTA then compares the average monthly transit fare to the average cost of driving. The cost of driving is calculated using the 2008 AAA average cost of driving formula. AAA cost of driving formula is based on variable cost and fixed cost. The variable cost includes the cost of gas, maintenance and tires. The fixed cost includes insurance, license registration, depreciation and finance charges. The comparison also uses the average mileage of a mid-size auto at 23.4 miles per gallon and today’s price for self-serve regular unleaded as recorded by AAA at $3.909 per gallon. The analysis also assumes that a person will drive an average of 15,000 miles per year. The savings assumes a two person household will live with one less car. Besides all the money you will be saving don’t forget that public transportation is a great way to reduce your carbon footprint as well.

To calculate your individual savings with or without car ownership, go here.

Of course you can save a whole lot more money by riding your bicycle to work every day.