Written For The Australian - Soaring fuel prices: how electric vehicles can beat petrol cars on cost
by James GerrardThu Mar 26 2026
Petrol at $2.50 a litre. Diesel at $3.00. And no sign of relief while the Middle East remains a tinderbox. So the question that used to feel ideological has become purely mathematical: does an electric vehicle now actually beat a petrol car on cost?
I crunched the numbers, and the answer surprised even me.
For years, EVs lost the total cost of ownership argument. They cost tens of thousands more upfront, depreciated like a stone, and the charging infrastructure was patchy. That's changed. Cheap Chinese entrants have dragged prices down to the point where a small EV is $25,000 on-road and a medium one $40,000 — right in the ballpark of a comparable hybrid or ICE vehicle. Once the price gap closes, the depreciation gap closes with it.
Running costs are where it gets interesting. Yes, EV insurance is around $600 a year more, and tyres wear about 30 per cent faster because of the extra weight. But servicing is cheaper, there's no fuel excise (for now), and if you rely on commercial fast chargers at 50-60c per kWh, you're looking at about $1,344 a year to travel 14,000km. Compare that to $1,400–$2,800 in petrol for a small-to-medium ICE at today's pump prices.
The real kicker is for households with solar and a home battery — particularly with the 30 per cent federal rebate under the Cheaper Home Batteries Program. Charging off the grid drops the fuel line to effectively zero, putting more than $50 a week back in your pocket versus a petrol equivalent.
Two caveats. Large EVs still cost double their ICE counterparts, so the sweet spot sits firmly in the small-to-medium range. And second-hand buyers can pick up bargains — a 2021 Tesla Model 3 that was $65,000 new now sells around $35,000. The previous owner wore the depreciation. You don't have to.