This week, the federal government’s temporary fuel consumption tax cut ends on September 28, 2022. Forecasts are for fuel prices to rise to 25.3 cents per liter, raising a 60-liter tank of gasoline by approximately $15.18 .
The cuts were a six-month measure introduced to ease consumer stress as fuel prices soared amid political unrest in Ukraine, an upcoming federal election and Covid-19 supply chain problems. Despite pressure to extend these measures due to the cost of living crisis, the reintroduction of full petroleum taxes has many Australians feeling they cannot afford to fill their tanks.
While the ACCC is ready to monitor Unusual Increases Immediately after the 28th, rising fuel costs beg the question: are electric vehicles (EVs) cheaper in the long run?
Do you save with an electric vehicle?
The limited choice of EV models in Australia – and the higher ticket price – means the initial cost can be much higher than equivalent petrol-powered vehicles. Coupled with the limited infrastructure to support EV charging and high energy costs, this can be a major deterrent for consumers.
However, EVs – specifically battery electric vehicles, or BEVs – have proven to be viable significantly cheaper to drive than comparable internal combustion engine cars (particularly when charged off-peak or coupled with renewable energy for charging). That Electric Vehicle Council estimates the average running cost of a fuel car at $14/km, while the average EV is around $4/km. Research by Evenergi estimated a $5,000 gap in the cost of ownership between comparable EV and petrol vehicles over 5 years.
These savings not only affect the pump, but also the mechanic. Because electric vehicles have far fewer moving parts than a traditional engine, you can save up to 40% on maintenance fees. Of course, getting a new car, let alone an electric vehicle, is difficult at the moment – but incentives are increasingly being put in place.
How do I buy an electric vehicle?
If you’re considering making the switch to an electric vehicle, you might want to consider auto loans that are specifically designed for electric and hybrid electric vehicles. With lofty goals to phase out new gasoline vehicles in favor of green cars, many lenders offer some of their best interest rates on loans for electric vehicles or cars that meet sustainability standards.
In the meantime, if gasoline is your choice, try to keep costs down. Certain brands offer membership discounts that can add up to be worthwhile. You can also keep an eye on one Gasoline Price Cycle Trackeras well as individual apps for different federal states (NSW, SA, WA, bag, QLD, N.T – not currently offered by Vic or ACT) to avoid excessive fees.
Did this story rev your engines? Check out our picks of Mozo’s best car loans for some top performers. Visit our Green Finance Hub to find more ways to save that can be sustainable.
^See information on the Mozo Experts Choice Personal Loan Awards
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