Rising Fuel Costs Prompt Shift to Electric Vehicles in Australia
For Matt Hurlston, a lifelong enthusiast of combustion engines, the thought of owning an electric vehicle (EV) was never appealing—until soaring fuel prices forced a change of heart. Hurlston, who resides in the south-east of Melbourne, found himself purchasing an EV after his son’s complaints about diesel costs during a car service. “My son was getting his diesel [car] serviced, and he was complaining about the price of fuel, so I went home, opened up my phone, put my credit card in, got the finance done, and bought an EV,” Hurlston explained.
Increasing petrol prices have catalyzed a surge in EV sales across Australia, particularly following the US-Israel conflict with Iran, which triggered an energy crisis. This situation has driven oil prices up, increasing the concern of potential fuel rationing (source).
Car dealerships have reported a noticeable uptick in the sale of EVs and hybrids, and brokerage firms are experiencing a rise in loan applications for electric vehicles. Auction houses are also seeing strong bids for used EVs. Although Hurlston initially disliked his first experience driving a Tesla, he recognized its benefits. “I drove the Tesla and said to myself it’s definitely not for me. It was a bit of a novelty, a bit like being in a computer game,” he remarked. Eventually, he appreciated the EV’s convenience and cost-effectiveness.
Australia’s Electric Vehicle Council reports that the nation had over 454,000 battery electric and plug-in hybrid electric vehicles (PHEVs) by the end of 2025, with EVs comprising about 13% of new vehicle purchases. The exemption of eligible EVs from fringe-benefits tax has further fueled this trend.
The EV sector’s growth could lead to significant fuel savings. A typical petrol vehicle covering 15,000 km annually might consume around 1,150 liters of fuel (source), suggesting the current EV fleet could save Australia over 500 million liters of petrol each year.
Pickles auction house is on track for a record month in EV sales, with a 20% increase compared to last month. Buyers aged 31 to 40 are the most active, likely due to young families seeking to reduce commuting costs. Brendon Green, Pickles’ general manager of automotive solutions, noted that rising petrol prices have heightened consumer awareness of running costs, making EVs more appealing.
Fuel prices continue to rise, with unleaded petrol reaching approximately $2.50 per liter and diesel nearing $3. The oil price surge, initiated by strikes against Iran, sparked concerns about the US’s ability to stabilize oil trade through the Strait of Hormuz. James Voortman, CEO of the Australian Automotive Dealer Association, emphasized that the earlier spike in oil prices from the Russian-Ukraine conflict had prepared consumers to shift to EVs once prices rose again.
As consumers reassess their purchasing habits, Loan Market’s asset finance specialist Will Hamer observed a shift in preferences. “It’s forcing a deeper conversation and people are pivoting on what they have been used to buying,” Hamer stated, noting a trend of professionals moving from traditional SUVs to electric options.
Despite the switch to an EV for daily use, Hurlston remains attached to his classic petrol cars. “I’ve got a classic Holden sitting in my garage, so I will still have the opportunity to go pay a lot for petrol,” he shared.
Original Story at www.theguardian.com