The running cost gap between electric cars and petrol cars in Australia has never been wider. With petrol prices stubbornly above $1.80/L and electricity rates stabilising, EVs now cost roughly one-third as much to run per kilometre — and even less if you charge from solar. Here's a detailed 2026 comparison of every running cost category.
Fuel Cost Per Kilometre
This is where EVs deliver their biggest advantage. The average petrol car uses about 8–10L per 100km, while a typical EV uses 15–18kWh per 100km. At current Australian prices, the difference is stark:
| Fuel Source | Cost per 100km | Cost per km |
|---|---|---|
| Petrol (avg 9L/100km @ $1.90/L) | $17.10 | ~17c |
| EV — grid charging (16kWh @ 32c/kWh) | $5.12 | ~5c |
| EV — off-peak charging (16kWh @ 18c/kWh) | $2.88 | ~3c |
| EV — solar charging (16kWh @ ~8c/kWh) | $1.28 | ~1.3c |
Based on the Australian average of 12,600km per year, that translates to annual fuel costs of roughly $2,150 for petrol, $645 for grid-charged EV, $363 for off-peak, and just $161 if you charge from rooftop solar.
Servicing and Maintenance
Electric cars have far fewer moving parts than petrol vehicles — no engine oil, no spark plugs, no timing belt, no exhaust system, and no traditional transmission. This dramatically reduces service costs.
| Servicing Item | Petrol Car | Electric Car |
|---|---|---|
| Annual service cost | $600–$1,000 | $200–$400 |
| Brake pads (replacement interval) | Every 40,000–60,000km | Every 100,000–150,000km |
| Oil changes | Every 10,000–15,000km | Not required |
| Transmission service | Every 60,000–80,000km | Not required |
| Tyre replacement | Every 40,000–50,000km | Every 30,000–40,000km |
Registration and Insurance
Registration costs vary by state, and several states now offer discounts or exemptions for EVs. For example, the ACT offers free registration for zero-emission vehicles, while Victoria and NSW have removed previous EV surcharges under federal pressure.
Insurance for EVs tends to be 10–20% higher than equivalent petrol cars, largely due to higher purchase prices and specialist repair requirements. However, this gap is narrowing as more repairers become EV-certified and competition increases among insurers.
| Cost Category | Petrol Car (annual) | EV (annual) |
|---|---|---|
| Registration | $350–$800 | $0–$800 |
| Insurance (comprehensive) | $1,200–$2,000 | $1,400–$2,400 |
Total Annual Running Cost Comparison
Putting it all together for a vehicle driven 12,600km per year:
| Running Cost | Petrol Car | EV (Grid) | EV (Solar) |
|---|---|---|---|
| Fuel / Charging | $2,150 | $645 | $161 |
| Servicing | $800 | $300 | $300 |
| Registration | $550 | $450 | $450 |
| Insurance | $1,600 | $1,800 | $1,800 |
| Total Annual | $5,100 | $3,195 | $2,711 |
| Annual Saving vs Petrol | — | $1,905 | $2,389 |
5-Year and 10-Year Projections
Running cost savings compound significantly over time, especially when factoring in rising petrol prices (historically 3–5% per year) and relatively stable electricity costs:
| Timeframe | Petrol Total | EV (Grid) Total | EV (Solar) Total |
|---|---|---|---|
| 5 Years | $27,500 | $16,500 | $14,000 |
| 10 Years | $59,000 | $34,000 | $28,500 |
Key Takeaways
- EVs cost roughly one-third as much per kilometre as petrol cars when charged from the grid
- Solar charging drops the cost to around one-tenth of petrol
- Servicing costs are 50–70% lower for EVs
- Insurance remains slightly higher for EVs, but the gap is closing
- Over 10 years, running cost savings of $25,000–$30,000 are realistic for average Australian drivers