Australians could save almost $1,600 a year on fuel by switching to an electric vehicle, but experts warn those savings depend heavily on electricity pricing.
New modelling by iSelect found an electric vehicle owner charging at home on a typical 35‑cent per kilowatt‑hour plan would spend about $892 a year powering their car. By comparison, a Toyota RAV4 hybrid would cost around $1,692 annually at the pump, while a petrol Mazda CX‑5 would cost roughly $2,484 at current fuel prices.
However, iSelect cautioned that EVs could cost more than hybrids if owners are on non‑competitive electricity plans or rely on expensive public charging. Modelling showed charging costs of around 70 cents per kilowatt‑hour could outweigh fuel savings.
iSelect spokesperson Sophie said with electricity prices expected to change from July 1, it was crucial for EV owners to regularly review their energy plans. She also highlighted the benefits of solar charging, particularly as some retailers reduce solar feed‑in tariffs.
While electric vehicles remain cheaper to run in most cases, hybrids are being promoted as a strong alternative for drivers unable to fully switch, particularly in regional areas where travel distances can be longer.
