Petrol and diesel prices have been climbing fast since the Middle East crisis began in February. In Savvy’s national fuel survey of 1,077 Australians, 76% said higher fuel costs are already causing financial stress.
The survey also showed that rising costs are shaping how people think about their next vehicle, with 78% of Australians considering a new vehicle confirming that rising fuel prices would influence their next car purchase. 40% of respondents said they might choose a more fuel-efficient vehicle, while 37.5% said they would consider an EV.
More Australians considering hybrid and electric cars
Rising fuel prices are pushing Australians to rethink not just how they drive, but also what they drive. Overall, 44% of those surveyed said they would consider a more fuel-efficient or electric vehicle.
However, when focusing only on those in the market for a new car, this impact becomes even more pronounced.
Of the 56.7% of respondents considering buying a vehicle:
- 40% would look for a more fuel-efficient vehicle
- 37.5% would consider an electric vehicle
- 22.5% say their decision wouldn’t be influenced
In total, 78% of prospective car buyers would consider switching to a more fuel-efficient or electric model if fuel prices continue to rise, highlighting how strongly the price at the pump is influencing vehicle demand.
Interestingly, diesel drivers were the least likely to want to switch to an EV or more fuel efficient vehicle, despite diesel prices climbing the most with only 63% ready to switch. Petrol drivers are more willing with 82% ready for either a more fuel efficient car or EV.
How much would you currently save by switching to an EV?
As fuel prices climb, the cost gap between charging an electric vehicle and filling up a petrol or diesel car is widening.
According to calculations by Savvy, someone living in Sydney and driving 12,000km a year would be looking at annual petrol costs of $1,153 to run a Mazda3 G20 Pure, compared to $578 (at an average of $48.17 per month) for the BYD Dolphin Premium, a comparable hatchback EV.
While fuel prices have continued to rise, electricity rates have stayed relatively the same, meaning the average EV charging price is unchanged. Using the same vehicles, here’s how much more it cost to fill up a Mazda3 in NSW across March 2026:
| Date | Petrol price | Monthly petrol cost | Annual petrol cost | Monthly difference vs EV | Annual difference vs EV |
|---|---|---|---|---|---|
| 23 Feb | 166.3 c/L | $98 | $1,176 | $50 | $598 |
| 2 Mar | 176.0 c/L | $104 | $1,246 | $56 | $668 |
| 9 Mar | 201.3 c/L | $119 | $1,426 | $71 | $848 |
| 16 Mar | 220.1 c/L | $130 | $1,559 | $82 | $981 |
| 22 Mar | 237.9 c/L | $140 | $1,685 | $92 | $1,107 |
| 29 Mar | 252.3 c/L | $149 | $1,788 | $101 | $1,210 |
| Amounts rounded to the nearest dollar. EV charging costs based on the NSW average $0.34/kWh electricity price obtained from Econnex in January 2026. Petrol prices based on the weekly NSW average published by the Australian Institute of Petroleum (AIP). |
|||||
In this case, switching from a petrol hatchback to an EV could save more than $100 a month and over $1,200 a year.
With diesel prices rising faster than petrol, diesel drivers could stand to save even more by switching to an EV or hybrid equivalent.
As an example, a NSW-based Ford Ranger XL owner driving 12,000km a year would have spent about $1,532 on fuel in 2025, while an equivalent ute EV like the KGM Musso costs around $865 annually to charge.
Here’s what the Ford driver would have paid at the pump over the last month and how it compares to the cost of running an EV:
| Date | Diesel price | Monthly diesel cost | Annual diesel cost | Monthly difference vs EV | Annual difference vs EV |
|---|---|---|---|---|---|
| 23 Feb | 179.8 c/L | $136 | $1,632 | $64 | $767 |
| 2 Mar | 180.6 c/L | $137 | $1,644 | $65 | $779 |
| 9 Mar | 199.2 c/L | $151 | $1,810 | $79 | $945 |
| 16 Mar | 248.0 c/L | $189 | $2,266 | $117 | $1,401 |
| 22 Mar | 283.8 c/L | $216 | $2,588 | $144 | $1,723 |
| 29 Mar | 311.4 c/L | $237 | $2,844 | $165 | $1,979 |
| Amounts rounded to the nearest dollar. EV charging costs based on the NSW average $0.34/kWh electricity price obtained from Econnex in January 2026. Diesel prices based on the weekly NSW average published by the Australian Institute of Petroleum (AIP). |
|||||
In just over a month, the Ford Ranger’s annual fuel cost has jumped by around 74%, meaning filling up now costs almost $2,000 more than charging an equivalent EV.
Increased demand for EVs
Even before the Middle East crisis, EV sales were rising in Australia. According to the Electric Vehicle Council, sales grew by 38% in 2025, with electric vehicles representing 12.3% of all new car sales.
Since then, demand has accelerated. In the past month, Savvy has seen a 106% surge in enquiries for green car loans, with more Australians looking at hybrid and electric vehicles as a way to manage rising fuel costs.
There’s also growing interest in other forms of EV finance. Novated leasing is a salary sacrificing arrangement between you, your employer and a lease provider, meaning your lease payments are deducted from your pre-tax salary to reduce your taxable income.
The biggest benefit as an EV owner right now is that you can avoid paying fringe benefits tax (FBT), which allows you to not make any post-tax payments at all in some cases. However, the government is reviewing this policy after unprecedented uptake, with over 100,000 people taking advantage of the tax break.
When it comes to financing EVs, opting for a novated lease could save you tens of thousands of dollars, according to Savvy Benefits General Manager Adrian Taylor.
“If you're looking at an EV, you'd be silly not to get a novated lease quote”, he said.
“As an example, let's use the average Australian, who's earning $80,000 and travelling around 15,000 kms per year, considering a new EV that costs $47,689.
“A standard five-year car loan at 6.50% p.a. will cost $422 per fortnight. Your annual running costs would total close to $20,500. Combine that with the total repayments and your car would actually cost you just over $75,000 across your loan term.
“Now, let's say that you were to instead take out a novated lease on this EV over five years. You'd be looking at fortnightly repayments of $396. Your running costs would be the same, but can be paid via your pre-tax deductions.
“Over the life of the lease, you'd save $36,070, including $24,440 in income tax.”