There are more options than ever when it comes to the types of cars you have available to choose from. Gone are the days of only petrol and diesel models; in 2025, more than one in four new cars sold in Australia were either electric, plug-in hybrid or hybrid vehicles.
An increasing number of Aussies are making the switch, especially as petrol prices seem to go through more peaks than troughs. Which option is really best for you, though: hybrid, EV or petrol? We’ve crunched the numbers on a selection of vehicles for each powertrain to estimate how much you’ll be paying to run your car.
Overview: hybrid vs EV vs petrol and diesel
Hatches
SUVs
Utes
Best sellers: hybrids, EVs and petrol/diesel
Top ten best-selling petrol/diesel cars: 2025
Top ten best-selling hybrid/PHEV cars: 2025
Top ten best-selling electric cars: 2025
Fuel vs electricity costs
Working out how much you’ll be paying for electricity and/or fuel for your hybrid, PHEV, electric, petrol or diesel vehicle isn’t necessarily a straightforward equation. There are plenty of variables that can impact your car’s fuel economy or range, such as your speed, the distance you’re driving and whether you’re running the air conditioner, on top of the ever-fluctuating costs of fuel and power.
To give as accurate an estimate as possible, we’ve crunched the numbers based on the average cost of fuel in NSW in 2025 (per the Australian Institute of Petrol) and the average NSW electricity tariff through our energy comparison partner, Econnex.
The results showed that electric vehicles were substantially cheaper to recharge across the board compared to petrol and diesel powertrains. The BYD Dolphin Premium’s annual charging cost ($578) is just under 50% cheaper than the Mazda3 G20 Pure’s petrol spend per year ($1,153). That figure is slashed to 72.2% when comparing the Tesla Model Y RWD ($408) to the Mitsubishi Outlander ES 2WD ($1,466).
Of course, the true cost for your situation will depend on a range of factors, such as:
- Your car’s fuel economy
- How much you drive your car each year
- The cost of fuel throughout the year
- The cost of electricity throughout the year
- What time of day you charge your car (and whether you have a solar energy plan)
Are PHEVs actually cheaper to run than petrol or diesel?
Although PHEVs are designed to bridge the gap between hybrids and EVs, they can potentially end up being more expensive to refuel than either option. That’s because of their inferior electric range and petrol fuel economy compared to their contemporaries.
In the case of the Shark 6 Premium from BYD, its 29.58kWh battery gives it an electric range of 100km. Your Shark 6 will automatically use the battery to power the car first, effectively giving you your first 100km fuel-free. However, when you compare the bang for buck with a pure EV, it simply doesn’t compete.
In the Shark, you’re using around 0.296kWh per kilometre while in electric mode, compared to the 0.1kWh per kilometre of the Model Y RWD or 0.142kWh per kilometre of the Dolphin Premium. That means you’re burning two to three times as much power before rolling into its 7.9L/100km fuel economy, which BYD claims kicks in once you dip below 25% charge.
The result is that you’re spending close to $350 more per year on charging alone for your Shark 6 Premium compared to the KGM Musso EV AWD, on top of having to pay for petrol.
The low fuel economy can still work for those who catch public transport or don’t have far to travel to and from work, as you’d still only need to charge once every few days to a week. For those with long commutes or who enjoy long road trips, there’s no doubt that you’ll be forking out for the pleasure.
Car finance cost: hybrid vs EV vs petrol and diesel
Of course, many Aussies aren’t in a position to fork out tens of thousands of dollars on a brand-new vehicle without some assistance. That’s where a car loan can come in handy, allowing you to spread the cost of the vehicle out over five years or more. So, how much will a car loan really cost you? Let’s take a look at how much you’d be paying each month and overall for each of the models we’ve discussed so far:
How novated leasing could work for your EV, hybrid or petrol car
Another finance option available to those whose employers offer it is novated leasing. This is a salary sacrificing agreement where you pay for part (or all) of your lease through your pre-tax income, thereby reducing your payable income tax.
There are massive incentives currently on offer for EVs financed through a novated lease, thanks to their exemption from fringe benefits tax (FBT) up to $91,387. This exemption means that you won’t need to make payments out of your post-tax income, making the income tax benefit much more lucrative. Here’s what that looks like for EVs compared to non-EVs:
| Car type | Purchase price | LCT threshold | LCT payable | Total cost |
|---|---|---|---|---|
| Petrol | $90,000 | $80,567 | $2,830 | $92,830 |
| Electric | $90,000 | $91,387 | $0 | $90,000 |
However, the Australian Government announced it would review the exemption in late 2025 after projections revealed it was set to cost $1.35 billion over four years up to the end of the 2025-26 financial year. Should the exemption be scrapped, which industry experts are tipping as a matter of “when”, not “if”, EVs will fall into the same camp as all other powertrains.
Towing capacity: hybrid vs electric vs petrol and diesel
If you’re in the market for a ute, whether that be for your business or your weekend warrior alter ego, it’s worth looking at the differences between how the powertrains stack up. The first thing that those bringing their caravan or boat along for the ride will look at is their towing capacities.
Right now, EVs in Australia simply can’t offer the same capacity as petrol and diesel utes (and even some PHEVs). As you can see from the comparison in the tables above, the maximum braked towing capacity of the Musso EV sits at 1,800kg, which is still substantially higher than the other main electric ute option on the market in the LDV eT60 (1,000kg).
By contrast, diesel utes like the Ford Ranger support towing up to the industry standard of 3,500kg, as is also the case with popular models like the Toyota HiLux, Mitsubishi Triton and Isuzu Ute D-Max. Even PHEVs like the GWM Cannon Alpha and the Ranger’s plug-in variant maintain that capacity, though the Shark 6 drops to 2,500kg.
Not only do EVs fall short in this respect, but the extra energy required to tow heavy objects will deplete your battery at a much faster rate (as is also the case for fuel consumption for non-EVs, it must be said). If you’re going on long haul drives with heavy cargo in tow, think carefully about whether your EV has the range and the capacity to go the distance.
Pros and cons of hybrid cars
Pros
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Improved fuel economy
One of the main reasons why you might lean towards a hybrid vehicle is its superior fuel efficiency compared to petrol or diesel vehicles.
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Reduced emissions
The other reason is probably to do with their reduced environmental impact, though the reported reduction of 75% less CO2 has been shown to be closer to 19% for PHEVs.
Cons
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Often more expensive than petrol/diesel
Although there are plenty of competitively priced options available for hybrid cars and PHEVs, they often sit at a higher base retail price than their non-electrified counterparts.
Pros and cons of electric cars
Pros
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Best for the environment
There’s no debate about which vehicle option is best when it comes to reducing emissions, with EVs estimated to emit 30 to 40 tonnes of CO2 fewer than petrol cars over their lifetimes.
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Charging is cheaper than refuelling
The fact that you’re paying to charge your car off your electricity grid instead of refuelling at a petrol station means that you’ll likely be saving hundreds each year.
Cons
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Range anxiety is real
Because the EV charging infrastructure is still growing around Australia, many drivers aren’t as confident about going on long trips for fear of running out of charge.
Pros and cons of petrol and diesel cars
Pros
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Most widely available
Petrol and diesel still account for a large majority of the new vehicles sold in Australia, as well as being among the cheapest options available (though EVs and hybrids are catching up).
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Plenty of refuelling options on the road
Compared to electric vehicles, there’s much less angst around running out of fuel while driving around, as you’re never too far from a service station.
Cons
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Worst option for emissions
It goes without saying that the model with the least electrification would be the worst when it comes to emissions, so choosing a pure petrol vehicle may give pause to the environmentally conscious.
Hybrid vs EV vs petrol: which is best for me?
The best car ultimately comes down to your situation, needs and preferences as a driver. You’ll need to consider the following questions when deciding which option is best for you:
- Do I need a car for long-distance driving? Hybrid vehicles are among the best for long-range driving, given that they boast a superior fuel economy to petrol and diesel cars.
- Am I mainly driving around the city? EVs and PHEVs are the most efficient for short commutes and minimal long-haul trips, given that they make use of cheaper electrical power. Because PHEVs come with inferior batteries and ranges, you’ll need to charge them more often.
- What’s my car budget? Petrol and diesel cars are generally cheaper to buy, but there’s no doubt that hybrid and electric vehicles are becoming increasingly competitive in the pricing stakes.
- How much do I want to spend on running costs? Electric cars are the cheapest to run when it comes to charging vs refuelling, but it’s also worth considering your insurance and servicing costs, which can be steeper with certain cars (see: Tesla).
- Will I be towing a trailer or caravan? Diesel and hybrid cars are generally best when it comes to towing at the moment, though EV utes are making advancements in that department.
