EV vs Petrol Running Costs Australia: How Much Do You Really Save?

19 March 2026|8 min read

Detailed comparison of EV vs petrol running costs in Australia including fuel vs charging, servicing, registration, insurance, and depreciation. Real numbers for 2026.

EV vs petrol: the total cost comparison most people get wrong

When most people compare EVs and petrol cars, they focus on the sticker price — and EVs still cost more upfront in most segments. But the sticker price is only part of the story. Running costs are where EVs win decisively, and over a typical 5-year ownership period, cheaper running costs can more than offset the higher purchase price. In 2026, the average EV in Australia costs $45,000–$55,000 driveaway for a well-equipped model (BYD Atto 3, Tesla Model 3, MG4 Extended Range), while a comparable petrol car costs $35,000–$45,000 (Toyota Corolla Cross, Mazda CX-30, Kia Cerato). That is a $10,000–$15,000 price gap. But when you add up fuel vs charging, servicing, registration discounts, and insurance over 5 years, the EV saves $8,000–$15,000 in running costs — largely closing or eliminating the purchase price gap. And if you acquire the EV on a novated lease with the FBT exemption, the tax savings add another $15,000–$35,000 over 5 years, making the EV dramatically cheaper in total cost of ownership. This article breaks down every running cost category with real 2026 Australian figures so you can make an informed comparison.

Fuel vs charging: how much does it cost per kilometre?

This is the biggest running cost difference between EVs and petrol cars. In March 2026, average unleaded petrol prices in Australian capital cities range from $1.70 to $1.90 per litre. A typical mid-size petrol car (Toyota Corolla, Mazda 3, Hyundai i30) consumes 6.5–8.0 litres per 100 km in real-world driving. At $1.80 per litre, that equates to $11.70–$14.40 per 100 km, or approximately $1,755–$2,160 per year on 15,000 km. A mid-size SUV (RAV4, CX-5, Tucson) at 8.0–10.0 L/100km costs $14.40–$18.00 per 100 km, or $2,160–$2,700 per year. For EVs, the energy cost depends on how you charge. Home charging on a standard residential electricity tariff of 30–35 cents per kWh is the cheapest option. A typical EV consumes 15–18 kWh per 100 km in real-world driving (BYD Atto 3: 16.5 kWh/100km, Tesla Model 3: 14.9 kWh/100km, MG4: 16.0 kWh/100km). At 32 cents per kWh, that is $4.80–$5.76 per 100 km — roughly one-third the cost of petrol. Annual charging cost for 15,000 km: $720–$864. If you have rooftop solar and charge during the day, the cost drops to near-zero (or the marginal cost of your solar feed-in tariff, typically 5–8 cents per kWh, making charging cost just $1.12–$1.44 per 100 km). Public DC fast charging is more expensive at $0.45–$0.60 per kWh ($6.75–$10.80 per 100 km), but most EV owners do 80–90% of their charging at home. Annual energy saving: EV over petrol approximately $1,000–$1,800 per year.

Servicing costs: why EVs are dramatically cheaper to maintain

Electric vehicles have far fewer moving parts than petrol cars — no engine oil, no oil filter, no spark plugs, no timing belt, no transmission fluid, no exhaust system, no clutch. An EV drivetrain has approximately 20 moving parts compared to over 2,000 in a petrol engine and transmission. This translates directly into lower servicing costs. A typical petrol car service schedule involves minor services every 10,000–15,000 km ($200–$350) and major services every 30,000–40,000 km ($400–$800). Over 5 years at 15,000 km per year (75,000 km total), you will spend approximately $3,500–$5,500 on scheduled servicing for a petrol car. EV servicing is simpler and cheaper. Most EVs require an annual check of brakes, tyres, coolant, and cabin filter. Tesla charges approximately $200–$300 per annual service. BYD services cost approximately $150–$250. Hyundai and Kia EV servicing runs $180–$280. Over 5 years, total EV servicing costs are approximately $1,000–$1,800. That is a saving of $2,000–$4,000 over 5 years compared to petrol. Additionally, EV brake pads last much longer because regenerative braking does most of the deceleration work — many EV owners go 100,000+ km without needing brake pad replacement, whereas petrol cars typically need new pads at 40,000–60,000 km ($300–$600 per set). Tyres are one area where EVs can be slightly more expensive — EV tyres wear faster due to the heavier weight and instant torque, and some EVs require specific low-rolling-resistance tyres that cost $50–$100 more per tyre. Budget an extra $200–$400 over 5 years for tyres.

Registration and government incentives in each state

Several Australian states offer registration discounts or other incentives for electric vehicles, though these vary and change periodically. In the ACT, zero-emission vehicles receive a full stamp duty exemption and two years of free registration. In NSW, EVs were previously exempt from stamp duty, but this has now ended — however, the state offers $3,000 rebates on eligible EVs under certain programs (check current availability). In Victoria, EVs pay a road user charge of 2.8 cents per km (approximately $420/year at 15,000 km), which partially offsets other savings — this is unique to Victoria and has been controversial. In Queensland, EVs receive a $6,000 rebate on eligible vehicles under $68,000, and registration costs are equivalent to petrol vehicles. In South Australia, there is a $3,000 subsidy for new EVs. In Western Australia, EVs receive a $3,500 rebate. Tasmania offers a $2,000 rebate and stamp duty exemption. In terms of ongoing registration costs, most states charge similar registration fees for EVs and petrol cars, though the ACT exemption is notable. When calculating your total cost comparison, factor in any state-specific incentives you can access. These one-off rebates and discounts effectively reduce the purchase price gap between EVs and petrol cars by $2,000–$6,000 depending on your state.

Insurance: are EVs more expensive to insure?

Insurance is one area where EVs can be slightly more expensive, though the gap has narrowed significantly in 2026 as insurers have gained more data on EV claims. On average, comprehensive insurance for an EV costs 5–15% more than an equivalent petrol car in the same price range. For a $45,000 BYD Atto 3, annual comprehensive insurance typically ranges from $1,200 to $1,800 depending on your age, location, and driving history. A comparable $35,000 petrol SUV (Kia Seltos, Hyundai Venue) would cost $900–$1,400 to insure. The higher EV insurance cost is driven by several factors: higher repair costs due to specialised battery and electrical components, fewer qualified EV repair shops (leading to longer repair times and higher labour costs), and the higher replacement value of the vehicle. However, several insurers now offer EV-specific policies with competitive rates. NRMA, RACV, and Budget Direct have introduced EV-friendly policies that account for lower accident risk (EVs have excellent safety ratings due to their low centre of gravity and advanced driver assistance systems). Shopping around between insurers can yield savings of $300–$600 per year. Over 5 years, the insurance premium difference between an EV and petrol car is approximately $1,000–$2,500 — a cost that is more than offset by the fuel and servicing savings discussed above.

Depreciation: which holds value better?

Depreciation is the largest single cost of car ownership, and this is where the comparison gets nuanced. Historically, EVs depreciated faster than petrol cars due to rapidly improving technology, falling new car prices, and range anxiety concerns in the resale market. However, this trend has shifted significantly in 2024–2026. Tesla Model 3 and Model Y retain approximately 65–70% of their value after 3 years — better than most petrol cars in the same price bracket. The BYD Atto 3 and Dolphin are too new for reliable 3-year resale data, but early indications from 1–2 year old resales suggest 70–75% value retention. The key factors driving better EV resale values are: increasing demand for used EVs as buyers move away from petrol, the FBT exemption making used EVs under novated lease attractive (the exemption applies to qualifying used EVs first held after July 2022), and battery technology proving more durable than early fears suggested. For a 5-year cost comparison, assume depreciation of approximately 50–55% for both EVs and petrol cars in the mainstream market ($35,000–$55,000 price range). On a $45,000 EV, that is approximately $22,500–$24,750 in depreciation. On a $37,000 petrol car, that is $18,500–$20,350. The EV depreciates more in absolute dollars due to the higher starting price, but the percentage is similar. If you acquire the EV on a novated lease, the residual value is predetermined by ATO guidelines, and you pay it out at lease end — the market depreciation is less relevant because your cost is locked in.

Total 5-year cost of ownership: EV vs petrol side by side

Here is the complete 5-year cost comparison for a $45,000 EV (BYD Atto 3 Extended Range) versus a $37,000 petrol SUV (Kia Seltos S) on 15,000 km per year. Petrol SUV — Purchase price: $37,000. Fuel (5 years): $12,375 ($2,475/year at 9L/100km and $1.83/L). Servicing: $4,200. Insurance: $6,500 ($1,300/year average). Registration: $4,500. Tyres: $1,800. Depreciation: $19,240 (52% over 5 years). Total 5-year cost: $85,615. EV SUV — Purchase price: $45,000. Charging (5 years): $4,200 ($840/year home charging). Servicing: $1,200. Insurance: $7,500 ($1,500/year average). Registration: $4,500. Tyres: $2,100. Depreciation: $23,400 (52% over 5 years). Total 5-year cost: $87,900. Without any tax benefits, the EV costs only $2,285 more over 5 years despite an $8,000 higher purchase price — the running cost savings almost entirely close the gap. Now add the novated lease FBT exemption on an $80,000 salary: the tax savings are approximately $21,000 over 5 years. The EV total cost drops to approximately $66,900 versus $85,615 for the petrol car — a saving of $18,715. That is why the novated lease changes the equation so dramatically.

The bottom line: when does an EV save you money?

An EV saves you money in running costs from day one — charging is cheaper than petrol, servicing is cheaper, and ongoing maintenance costs are lower. The question is whether these running cost savings offset the higher purchase price over your ownership period. Based on 2026 prices, the breakeven point (where total EV costs equal total petrol car costs, without any tax benefits) is approximately 4–6 years for mainstream models when comparing like-for-like segments. With a novated lease and FBT exemption, the breakeven is immediate — the EV is cheaper from year one. For specific scenarios: if you drive more than 15,000 km per year, the EV savings are larger because fuel/charging is the biggest cost difference. If you have rooftop solar, the savings are even bigger because charging is nearly free. If you are on a salary above $80,000, the novated lease tax savings are maximised. If you keep cars for 5+ years, the lower servicing and fuel costs compound. The only scenario where a petrol car clearly wins on pure cost is if you drive very low kilometres (under 8,000 km/year), park in a situation where home charging is impossible (apartment with no charging access), and buy a very cheap petrol car (under $25,000) that has no EV equivalent at a similar price point. For everyone else, the maths increasingly favours electric. Use our Take Home Pay Calculator to model a novated lease scenario, and our Tax Calculator to see how salary sacrifice affects your tax position.