Cost index for passenger transport by bus

Cost component: the main cost elements (cost components) in the bus industry.

Cost group: prices are reported for standard bus types that the companies deliver to the Norwegian market.

Cost group

• Labor costs
• Fuel costs
• Depreciation
• Interest rate
• Repair and maintenance costs
• Administrative cost

Labor costs are basic salary, irregular and fixed supplements, overtime pay, holiday pay, pension, employer's tax and other indirect costs.

Labor cost index for the bus industry and private businesses, table 11934, the index is composed of labor costs for the industries 49.311 Bus transport in urban and suburban areas, 49.391 Bus transport outside urban and suburban areas (50%) and the main business areas B-N (50%) in Classification of Standard Industrial Classification.

Fuel costs are expenses directly linked to fuel consumption and are collected from the largest fuel suppliers that supply the bus industry. Auto diesel is obtained from the Consumer price index.

Depreciation is based on the price development of new buses obtained from market-dominant bus suppliers. The depreciation period is 10 years with a residual value of 0 percent.

The interest rate is 3-month Nibor plus marginloan margin

Capital cost index for the bus industry base on depreciation and interest costs, table 11935, consists of depreciation based on the price development of new buses and quarterly Bank of Norway and lending margin, annually adjusted for inflation with CPI-JAE. Depreciation has a weight of 73% and interest 27% in the calculation for this table.

Repair and maintenance include three cost components: repair and maintenance (workshop costs, washing, etc.), tire costs and insurance costs. Repairs and maintenance follow the development in the price index for maintenance and repair at workshops which is included in the Consumer Price Index. This index captures the general price development of workshop services (parts and hourly price) at car workshops across the country. Tire costs and insurance costs are taken from the Cost Index for goods and lorry transport.

Administrative costs include costs related to repair and maintenance of buildings, insurance (buildings), sanitation, water and wastewater, accounting, auditing, consulting, office expenses, rental facilities, and light and heat. The various sub-indices are based on data that is already collected by Statistics Norway.

Weight: shows the cost share for a cost component, cost group or industry included in an index. The weight share is used as a measure of how important a cost component is and determines how much it should count in an index.

From the 4th quarter of 2021, electricity as fuel for 5 regions is included in the index. These are:

• NO1 Electricity, South-eastern Norway
• NO2 Electricity, South-western Norway
• NO3 Electricity, Mid-Norway
• NO4 Electricity, Northern Norway
• NO5 Electricity, West Norway

The applicable standard classification is The Standard Industrial Classification (SN2007) of Statistics Norway, which is based on the EU standard NACE Rev. 2.