Why petrol prices are high right now
Australian fuel prices in April 2026 are being pushed by a combination of sustained Middle East supply disruptions and a lower Australian dollar. While prices have always been cyclical, the current environment differs from previous spikes: geopolitical instability in major oil-producing regions has made long-term supply less predictable, and most analysts see $2.20–$2.60/L as the new normal range rather than a temporary spike.
For Australian commuters driving a typical petrol vehicle 15,000 km per year, the annual fuel bill at $2.40/L is approximately $3,600. At $2.60/L — the upper end of current forecasts — that rises to $3,900. These are real, recurring costs that compound over a 3–5 year vehicle ownership period.
The actual cost to drive: EV vs petrol
The comparison below uses a typical medium SUV in each category — a Toyota RAV4 petrol (one of Australia's best-selling cars) against a BYD Sealion 7 EV (similar size, similar price bracket). Both at 15,000 km per year.
Note: Public charging costs more than home charging ($0.40–$0.65/kWh at fast chargers). The above assumes predominantly home charging, which is the case for most commuters. Even blended charging at $0.30/kWh average, the annual EV fuel cost rises to only $720 — still $2,088/year less than petrol.
Other running cost differences
Fuel is only part of the running cost picture. EVs also have lower maintenance costs because they have no engine oil, fewer moving parts, and regenerative braking reduces brake wear significantly.
EV insurance runs slightly higher in Australia due to repair costs and parts availability — this gap is narrowing as BYD, Hyundai, and Tesla all expand their local service networks.
The break-even point — buying outright
EVs typically cost more to purchase than equivalent petrol cars. The BYD Sealion 7 ($54,990) costs roughly $10,000–$15,000 more than a comparable Toyota RAV4 petrol. At $2,678/year in running cost savings, the break-even point purchasing outright is approximately 4–6 years.
That's already compelling. But it assumes you're comparing on a level playing field. If you're buying via a novated lease, the calculation changes fundamentally.
How a novated lease collapses the break-even point
When you acquire an EV via a novated lease, two things happen that don't apply to an outright purchase:
- The purchase price is paid from pre-tax income — effectively giving you a 32–47% discount on the car depending on your tax bracket
- GST is reclaimed — your employer claims the GST credit on the purchase, saving you 1/11th of the car's price upfront
The result: for a $54,990 EV, the effective cost after tax and GST savings at a $100,000 salary is closer to $38,000–$40,000 — below the equivalent petrol car's list price. The running cost advantage then compounds on top of this lower effective entry cost.
Should you switch now or wait?
The case for switching now is stronger than it's been at any point in the past five years. Three factors are converging:
When waiting makes sense
Switching now is not right for everyone. You should wait if:
- You regularly drive more than 400–500 km between charging opportunities and don't have home charging access
- Your employer does not offer salary packaging (in which case you lose the biggest financial lever)
- You have an existing car loan or lease with significant break costs
- You are within 12 months of your current lease ending — wait for a clean start
The bottom line
At $2.40/L petrol, the running cost case for EVs is clear. With an FBT exemption that may not last forever and EV prices at their lowest point in Australian history, the financial case for switching via a novated lease is as strong as it has ever been. For salary earners above $60,000 with home charging access and a participating employer, the question is no longer "can I afford to switch?" — it's "can I afford not to?"