"Should my next car be electric?" is a question almost every Australian driver is now asking, and the honest answer is: it depends on you. A tradie towing a trailer 40,000 km a year and a retiree doing school runs around the suburbs will reach very different conclusions — and both can be right. This is the kind of comparison I built FueVolt's cost tools to help with.
Each powertrain has distinct running costs, and the cheapest option depends on how you drive, where you live and how long you keep the vehicle. If you want to compare specific models, the government's Green Vehicle Guide lists fuel use, running costs and emissions side by side.
Fuel and Energy Costs
The most visible running cost is what you spend at the pump or charger. As of 2026 (prices indicative — check FueVolt for live prices), average Australian prices sit around 170 cents per litre for unleaded 91, 190 cents for diesel, and roughly 30 to 45 cents per kilowatt-hour for public EV charging. Home EV charging on an off-peak tariff can be as low as 15 to 20 cents per kWh.
For a typical mid-size sedan driving 15,000 kilometres per year:
A petrol car consuming 8 litres per 100 km uses 1,200 litres annually, costing around $2,040 at 170 cents per litre.
A diesel car consuming 6.5 litres per 100 km uses 975 litres, costing approximately $1,853 at 190 cents per litre.
An electric car consuming 16 kWh per 100 km uses 2,400 kWh, costing about $600 charging at home (25 cents per kWh) or $960 using public chargers (40 cents per kWh).
The EV saves $1,000 to $1,400 per year in energy costs alone compared to petrol. Diesel sits between petrol and electric, offering better efficiency but at a higher price per litre.
Servicing Costs
Electric vehicles have far fewer moving parts than internal combustion engines. There is no engine oil, oil filter, spark plugs, timing belt, transmission fluid or exhaust system to maintain. EV servicing typically involves brake inspections, tyre rotations, cabin filter changes and software updates.
Annual servicing for a petrol car averages $600 to $900. Diesel servicing is often $700 to $1,100 due to more complex emissions systems including diesel particulate filters. EV servicing averages $200 to $400 per year.
Registration and Insurance
In most Australian states, EV registration costs are comparable to petrol vehicles. Some states have explored road user charges for EVs to offset declining fuel excise revenue, though legal challenges have affected their implementation. The Electric Vehicle Council tracks the state-by-state incentives and charges that apply to EV owners.
Insurance premiums for EVs can be higher due to the higher purchase price and specialised repair requirements. Shopping around is essential.
Total Cost of Ownership
When you combine fuel, servicing, registration, insurance and depreciation over five years, EVs are increasingly competitive despite their higher purchase price. Government incentives in some states — such as stamp duty exemptions and rebates — narrow the gap further.
For drivers covering high annual kilometres (20,000 km or more), especially those who can charge at home on cheap off-peak power, an EV is almost certainly the cheapest option to run. For lower-mileage drivers or those without home charging access, a fuel-efficient petrol car may still be more economical when factoring in the higher EV purchase price.
Diesel makes most sense for heavy towing, long highway trips and vehicles that cover very high kilometres, where the superior fuel efficiency offsets the higher per-litre cost and servicing expenses.
The Bottom Line
There is no single cheapest option for everyone. Use the FueVolt cost comparison tool to estimate your personal weekly fuel versus electric costs based on your driving habits.