EV vs Petrol: Real Cost Right Now

Let's cut straight to the numbers. A typical Australian drives about 15,000km per year. Here's what it costs to fuel that driving:

	Petrol car	Electric car
Efficiency	8.5L/100km	15kWh/100km
Energy needed/yr	1,275L	2,250kWh
Cost per unit	$2.50/L	$0.30/kWh
Annual fuel cost	$3,188	$675
Annual saving	$2,513 with EV

That's $2,513 a year in fuel savings alone. Even with the temporary excise cut bringing petrol down, you're still paying over $2,800/yr vs $675 for electricity.

Over 5 years at these prices, that's $12,565 saved on fuel. Over 10 years, $25,130. And electricity prices are far more stable than petrol — you're not at the mercy of Middle Eastern conflicts and OPEC decisions.

True. The average EV in Australia costs around $50,000 (think BYD Atto 3, Tesla Model 3, MG4). A comparable petrol car sits around $35,000. That's a $15,000 gap.

At $2,513/year in fuel savings, the breakeven is about 6 years. If fuel stays at $2.50+ (which looks likely with the Iran situation), it's closer to 5 years.

But there's more to the equation:

• Servicing: EVs have far fewer moving parts. No oil changes, no transmission servicing, no exhaust system. Average EV servicing is $300-500/yr vs $800-1,200 for petrol.
• Rego: Some states offer EV rego discounts (ACT, for example)
• Resale: EV resale values have stabilised and are now comparable to petrol equivalents

Factor in servicing savings of ~$500/yr, and the breakeven drops to under 5 years.

Not all electricity is created equal when it comes to EV charging:

Charging method	Cost per kWh	Cost per 100km	Annual cost (15,000km)
Home — off-peak overnight	$0.15-0.20	$2.25-3.00	$338-450
Home — standard rate	$0.25-0.35	$3.75-5.25	$563-788
Public fast charge	$0.50-0.65	$7.50-9.75	$1,125-1,463
Home solar	$0.00-0.05	$0.00-0.75	$0-113

The golden setup is charging overnight on an off-peak tariff, or during the day if you have solar panels. Some EV owners with decent solar systems are essentially driving for free.

Even using public fast chargers exclusively (worst case), an EV is still cheaper than petrol at current prices — $1,463/yr vs $3,188/yr.

Here's where EVs get really interesting financially. Under the current rules, electric vehicles under $91,387 are exempt from Fringe Benefits Tax when salary packaged through a novated lease.

This means you can pay for your EV from your pre-tax salary, saving you your marginal tax rate on every dollar. For someone earning $100K, that's a 32.5% saving (plus 2% Medicare) on the lease payments, running costs, and insurance.

A $50,000 EV on a novated lease effectively costs more like $34,000-38,000 after tax savings. Combined with the fuel savings, the total cost of ownership is significantly less than a comparable petrol car.

Run the numbers on our novated lease calculator to see your specific savings.

The honest answer depends on your situation:

Switch now if:

• You're spending $50+ per week on fuel
• Your current car is due for replacement anyway (5+ years old, high km)
• You have home charging available (garage, carport, driveway)
• You can access a novated lease through your employer
• You do most of your driving in the city or suburbs (range anxiety is a non-issue for daily commutes)

Keep your petrol car if:

• It's relatively new and running well
• You regularly drive long distances in regional areas with limited charging
• You don't have access to home charging and would rely on public chargers
• The upfront cost would put you into financial stress

If you're keeping your petrol car, claim your fuel tax deductions and use our fuel savings calculator to find every way to cut costs.