Fuel prices are in huge focus, and with the risk of shortages and talk of rationing, thousands of motorists around Australia are giving EVs a serious look for the first time. In fact, recent data suggests this shift is already underway. Some manufacturers are reporting a sharp rise in EV enquiries, with Skoda Australia noting interest has doubled in recent days.
For most drivers, the real question is simple: what actually costs less to run day to day, an EV or a petrol car? Let’s take a look.
Making a fair comparison
Comparing electricity and petrol directly is not straightforward. The easiest way to compare them is by distance.
Take two cars, one electric and one petrol, each travelling 100 km on the same road.
The average EV uses about 15-20 kWh per 100 km. At a typical electricity tariff of $0.25 per kWh, that works out to $3.75-$5.00.
A typical petrol car uses 8 to 10 litres per 100 km. At $2.50 per litre, the same trip costs $20-$25.
Not even close. EVs come in at around 80 per cent cheaper over a 100 km journey. Over a year, the difference becomes increasingly meaningful. For instance, travelling 15,000 km annually, an EV costs about $750 in electricity compared to an ICE (internal combustion engine) car, which uses roughly $3,750 in petrol. That’s a saving of around $3,000 per annum!
These figures assume home charging, which is the cheapest way to run EVs. Public fast charging is more expensive, but still generally cheaper than petrol per kilometre. Also, electricity prices and fuel prices both vary, and driving style affects efficiency in any car. Even with those variables, the overall cost advantage for EVs remains clear.
Old concerns, new reality
Battery longevity and replacement costs, once seen as major concerns for EV owners, are becoming less of an issue. Modern batteries are now expected to last well over a decade, often 15 years or more, and most retain around 80 to 90 per cent capacity even at high mileage. Replacement is uncommon, and while it can still be expensive when required, battery costs are falling. At the same time, buyer confidence is also on the rise, with used EV sales up significantly in the past year.
Long-distance charging infrastructure is another factor often cited by those hesitant to purchase an EV. The good news is the national network is expanding quickly, with major highways increasingly well covered and new fast-charging sites rolling out at pace. For EV owners, that means range and access are improving rapidly, making longer trips more practical than ever.
As fuel price uncertainty continues, buyers are now much more likely to start turning to EVs. Here at Planit Charge, we’ll be closely monitoring monthly car sales data to see whether the initial surge in interest translates into action and sales.