Australians Turn to Battery Powered Vehicles as Fuel Prices Bite

While fuel prices across the five capital cities have eased thanks to the federal government’s decision to halve the fuel excise on April 1, long-term uncertainty is prompting Australians to switch to battery-powered transport in record numbers.

The latest Australian Competition and Consumer Commission data confirms that retail petrol and diesel prices have reduced in response to the excise cut.

Average terminal gate prices for petrol had increased by 78.6 cents per litre (cpl) or around 52 percent from Feb. 20 to the end of March.

However, by early April, prices had begun to ease. Across the 5 largest cities, the daily average retail petrol price was 16.7 cpl lower compared to the peak.

Similarly, daily average retail diesel prices were 15.0 cpl lower.

But many vehicle owners have chosen not to take risks amid the uncertain situation in the Gulf. With consumer confidence consistently dropping, people are looking for security, and being able to avoid any upcoming fuel price hikes.

EV Sales Share Doubles

Sales of electric vehicles boomed in March, accounting for 14.6 percent of total vehicle sales, almost double the 7.5 percent they registered a year before, according to the Federal Chamber of Automotive Industries (FCAI).

Out of a total of 105,058 vehicle sales nationwide, 15,839 were EVs, 17,953 were hybrids, and 8,215 were plug-in hybrid models.

Toyota was the market leader with sales of 16,574 in March, followed by Kia (7,320) and BYD (7,217). Other big sellers were Mazda (7,156) and Ford (7,149).

FCAI chief executive Tony Weber said the figures showed strong growth in demand across all types of electric vehicles, but warned that the increase may be a reaction to current events.

“It is too early to determine whether this represents a structural shift in the market,” he said.

“More consumers are considering EVs due to the disruption to fuel supply caused by conflict in the Middle East, along with the review into the fringe benefits tax concession for EVs.

While the industry welcomes the shift toward meeting NVES (New Vehicle Efficiency Standard) targets, Weber warned that infrastructure remains a hurdle.

“A long-term shift to EVs will require Australian governments to boost public charging infrastructure, particularly in regional areas,” he said.

According to carloop, there are around 1,550 dedicated fast-charging sites across Australia, providing approximately 4,600 charging bays.

“Ensuring infrastructure keeps pace with consumer demand will be critical to enabling sustainable growth in EV adoption beyond short-term influences,” Weber said.

Two Wheels Also Gaining in Popularity

Meanwhile, not everyone has opted for cars and utes as their electric alternative—e-bike sales are also booming.

According to insurer NRMA, sales of the two-wheeled alternatives are expected to approach $1.3 billion this year.

Data from Expert Market Research predicts national sales of 288,911 units in 2026, up from 253,987 in 2025.

Key drivers include government incentives, a growing number of retail and online sellers, and a growing demand across commuter, recreational, and utility segments.

Peter Bourke, general manager of Bicycle Industries Australia, said sellers had experienced a “massive spike” in interest over the past few weeks, a trend he attributed directly to fuel price shocks and supply concerns.

“It took a few weeks for people to understand the price rise wasn’t going to be a one- or two-week thing,” he said. “That’s when shops began to see a lot more foot traffic.”

Longer-term forecasting by Expert Market Research predicts e-bike sales will exceed 650,000 units a year in Australia by 2035. The data was compiled using 70 interviews with industry, OEMs and manufacturers, governments, customs and commercial databases, and industry publications.

AAP contributed to this story.