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11+transport-costs

Fuel and Charging Costs

Calculate monthly fuel costs accurately using distance, fuel efficiency, and current fuel price — and include this figure in any vehicle ownership budget.

In this lesson

Fuel and Charging Costs is part of The True Cost of Transport. This preview shows how transport-costs connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.

Think about this money choice

Chukwu drives 40km a day to work. Petrol costs 700 in local currency a litre and his car does 12km per litre.

How it works

Fuel cost is one of the most significant and predictable running costs of a vehicle. It can be estimated accurately by dividing the daily distance by the vehicle's fuel efficiency (km per litre) and multiplying by the fuel price per litre. Doing this calculation monthly provides a reliable budget line for transportation expenses.

Apply it to a real decision

Real-life money moment: Chukwu drives 40km per day, 20 working days a month. His car does 12km per litre. Fuel costs 700 in local currency/litre. Daily fuel: 40 ÷ 12 × 700 in local currency = 2333 in local currency. Monthly fuel: 2333 in local currency × 20 = 46667 in local currency. That is 46667 in local currency/month — just for fuel. Before buying the car, he needs to confirm this fits in his budget.

Activity preview

Test the trade-off

Use the lesson to complete this short practice activity.

Practice funding your spending account

Open Requests and make a deposit request so you can see how money gets added before spending. Parent approval can happen later.

Quiz preview

Fuel and charging costs are ongoing vehicle expenses that:

Are subsidised by the government at no real cost to the owner
Are fixed and predictable since fuel prices never change significantly
Vary with usage and fuel prices and must be budgeted for monthly
Only apply to older vehicles — new vehicles run at no fuel cost for 3 years

Your car averages 10L/100km and fuel costs 700 in local currency/litre. A 200km trip costs:

7000 in local currency — 10 litres at 700 in local currency per litre for the full journey
14000 in local currency — 20 litres consumed multiplied by 700 in local currency
1400 in local currency — distance divided by the consumption rate
700 in local currency — the per-litre cost applies regardless of trip distance