Petrol prices are on the rise: how an Electric Vehicle could save you money this October

Petrol prices are officially set to soar again following the end of the fuel excise tax cut for Australian drivers of petrol cars. If you’re looking for some relief for your household budget, it may be worth considering the long-term benefits of sustainable vehicles.

On Wednesday, the full fuel excise tax was back in full force. While Treasurer Jim Chalmers advised it may take “several days” for the impact of the tax to hit bowsers, the average cost of unleaded petrol was already 10 cents higher at $1.83 a litre.

According to the weekly Australian Institute of Petroleum fuel report, Brisbane recorded the highest fuel prices across the capitals, at $1.91 a litre. However, the greatest weekly change in average costs was recorded in Adelaide, which rose by 36.1 cents to $1.88 a litre.

“[Prices will rise] as some of the cheaper fuel, which has been underground in tanks, runs out and is replaced by the more expensive fuel. But we’ve also got the regular fuel price cycle as well,” Treasurer Jim Chalmers told reporters in Canberra.

However, the news brings greater cost-of-living pressures to millions of Australians who are already juggling higher inflation and an October cash rate hike. If you’re looking into an alternative to petrol-based cars, it may be time to consider an electric vehicle (EV).

Electric vehicles: A potential money-saving alternative

While the upfront cost of an EV can seem like a contradictory factor when you’re looking to save money, it’s worth keeping in mind that they’ve been found to be significantly cheaper to run, including fuel savings of up to 70% and maintenance savings of around 40%, according to Transport NSW.

For an average car travelling 13,700 km per year, this equates to savings of around $1,000 - $1,200 in fuel costs, assuming the EV is charged overnight on an off-peak tariff.

With the transport sector accounting for almost 20% of total emissions in Australia, EVs are a sustainable alternative to petrol cars, with the added benefit of allowing drivers to avoid rising petrol prices

Keep in mind that the sale of new petrol cars are set to be banned in The ACT by 2035 (and likely other areas soon), so it could be worth adding them to your next car purchase shortlist

How to finance your electric vehicle

If you need a car loan to support your EV purchase, choosing a competitive option is the first step in ensuring costs are kept affordable. The good news is that green car loan lenders generally offer eligible customers lower interest rates on average. This is done to encourage Australians to make more sustainable vehicle purchases.

RateCity has ranked the top-rated green car loans on our Car Loan Leaderboard using our comprehensive, game-changing Real Time Ratings™ system. This system gives loan products a score out of five, based on cost and flexibility. But unlike other ratings systems that rank their products once or twice a year, our Real Time Ratings™ system ranks products live as you use the site, helping you narrow down your shortlist of green car loan options.

(Rankings are correct at the time of publishing. Please note lenders may trade places on the list as interest rates and fees change and RateCity’s tracker reflects these movements.)

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