Petrol Prices Are Rising in Australia. Here Is How Much You Could Save Driving an EV
Over the past few weeks, Australian motorists have once again been reminded how volatile petrol prices can be. Global supply pressures and geopolitical instability have pushed fuel prices higher across the country. Coupled with the fact that over 90% of fuel in Australia is imported from overseas, many cities are now seeing average unleaded prices above $2 per litre.
Once people see a 2 in front of the price for petrol, they begin to wonder about a simple question: How much does it really cost to run a petrol vehicle compared with an electric vehicle? When you combine rising fuel prices with the tax advantages of novated leasing, the savings from switching to an EV can be significant.
At CarBon, we are seeing a surge in people considering EV novated leasing as a way to protect themselves from rising fuel costs while reducing their overall running expenses.
Why Petrol Prices Are Rising?
Fuel prices in Australia have increased in recent weeks due to several global factors. Analysts warn that disruptions to oil supply and geopolitical tensions could push petrol prices even higher in the coming months. Australia is very exposed to global oil price fluctuations, and increases are often quickly passed on to customers.
Across the five metros, currently the average price for unleaded is around $2.20 per litre. Of course, this will vary depending on location and which servo you choose to fill up at.
Many economists believe prices could easily climb further. Some forecasts suggest petrol could exceed $2.50 per litre or more if global oil prices continue rising.
For drivers, this has a direct impact on the cost of going to work, picking the kids up from school and weekend travel.
Comparing the Cost of Driving 100 km
To understand the difference between petrol and electric vehicles, let us compare the cost of driving 100 km.
Tesla Model Y Long Range (Electric)
The Tesla Model Y Long Range consumes roughly 16 kWh per 100 km in real-world driving. This, of course, varies depending on how you drive and in what environment.
Electricity costs also vary across Australia depending on how, when and where you charge. We will use some ballpark figures for the purpose of simplicity.
Home Charging (Typical Electricity Rates)
Home electricity costs generally range between $0.25 and $0.45 per kWh, depending on the state and energy provider.
Cost per 100 km (home charging)
In many cases, charging during off-peak times can reduce this even further and having rooftop solar will reduce the cost even further.
| Electricity Price | Cost per 100 km |
| $0.20/kWh | $3.20 |
| $0.25/kWh | $4.00 |
| $0.30/kWh | $4.80 |
| $0.40/kWh | $6.40 |
| $0.45/kWh | $7.20 |
Public Charging
Public fast chargers typically cost around $0.60–$0.69 per kWh.
Cost per 100 km (public fast charger)
Even when using fast public chargers, EV running costs remain competitive with petrol.
| Charging Price | Cost per 100 km |
| $0.60/kWh | $9.60 |
| $0.80/kWh | $12.80 |
Petrol SUV Comparison
Now, let us compare that with a typical petrol SUV.
A mid-size SUV commonly consumes around 8.5 litres per 100 km.
Current Fuel Price (~$2.20 per litre)
| Scenario | Cost per 100 km |
| Petrol SUV | $18.70 |
If Petrol Reaches $2.50 per litre
| Scenario | Cost per 100 km |
| Petrol SUV | $21.25 |
If Petrol Reaches $3.00 per litre
| Scenario | Cost per 100 km |
| Petrol SUV | $25.50 |
The Savings Are Significant
Comparing those numbers makes the difference clear.
| Vehicle Type | Cost per 100 km |
| Tesla Model Y (home charging) | $4–$7 |
| Tesla Model Y (public charging) | $10–$13 |
| Petrol SUV today | ~$18 |
| Petrol SUV at $2.50/L | ~$21 |
| Petrol SUV at $3.00/L | ~$25 |
Even at current petrol prices, an EV could save $11–$14 per 100 km when charging at home.
Over 15,000 km per year, which equates to:
- $1,650 to $2,100 saved annually
- potentially $8,000+ over a typical novated lease
And that is before factoring in the additional tax savings available through novated leasing.
Why Novated Leasing Makes EVs Even Cheaper
Novated leasing allows employees to pay for their vehicle using pre-tax salary, reducing taxable income and lowering the overall cost of ownership.
For EVs, the financial benefits can be even stronger due to:
- Fringe Benefits Tax exemptions on eligible electric vehicles
- GST savings
- Lower servicing costs
- Significantly lower fuel costs
When you combine those savings with the rising cost of petrol, switching to an EV through novated leasing becomes a compelling financial decision.
The Bottom Line
Petrol prices are volatile and trending upward. Every time the price of fuel rises, the cost advantage of electric vehicles grows.
By switching to an EV such as a Tesla Model Y through a novated lease, Australian drivers can dramatically reduce their running costs while protecting themselves from future fuel price spikes.
At CarBon Novated Leasing, we help employees across Australia access competitive EV leasing options so they can start saving sooner.
