The EV running-cost argument is usually made with the best-case numbers and rebutted with the worst-case ones. Both sides are describing real scenarios. The honest answer is that where you charge matters more than what you drive — so let's build the per-kilometre cost from the ground up.
The core arithmetic
A Tesla Model 3 uses about 14.5 kWh per 100 km. A comparable petrol sedan or small SUV uses about 7.5 L per 100 km. Using NSW's average grid tariff (28.5c/kWh) and petrol at $1.92/L:
- EV, home charging: 14.5 × $0.285 = $4.13 per 100 km
- Petrol: 7.5 × $1.92 = $14.40 per 100 km
Over a typical 15,000 km year, that's about $620 versus $2,160 — a $1,540 annual saving, before servicing. These are the same state-level tariffs and fuel prices our EV vs petrol calculator uses, and you can swap in any car and any state there.
The gap widens or narrows by state. South Australia pairs the country's most expensive grid power (34.8c) with expensive petrol ($1.99) — the EV still wins comfortably. Queensland's cheaper power (25.2c) makes it one of the best EV states in the country. Nowhere in Australia does grid-charged driving cost more than petrol for a comparable car.
The tariff lever most owners miss
The grid average is the lazy price. Most retailers now offer EV-specific or time-of-use plans with overnight or midday windows at 8–15c/kWh — some as low as 8c. At 8c, the Model 3's fuel cost drops to $1.16 per 100 km: under a tenth of the petrol car. And a household with solar charging during the day pays only the foregone feed-in tariff (4–7c/kWh in most states) — effectively $0.60–$1.00 per 100 km. For solar households, the marginal cost of driving approaches trivial. (See our solar payback guide for why exporting is worth so little.)
Where the advantage collapses: public fast charging
Public DC fast charging runs 60–80c/kWh. At 70c, the Model 3 costs $10.15 per 100 km — still under petrol, but only just, and a less efficient EV SUV at 20 kWh/100 km hits $14 per 100 km: petrol parity. A driver who cannot charge at home — apartment dwellers, street parkers — loses most of the running-cost case. Before buying, the single most important question is not range; it's "where will this car sleep, and is there a power point there?"
Servicing, tyres, rego
EVs skip oil changes, spark plugs, timing components and most brake wear (regenerative braking does the majority of slowing). Real-world servicing runs a few hundred dollars a year less than an equivalent petrol car. Partially offsetting that: EVs are heavier and torquier, so tyres wear faster, and insurance still prices 10–20% higher on many models. Net, non-fuel running costs mildly favour the EV — call it $200–$400 a year — but fuel is where the real money is.
The purchase price question
Running-cost savings of $1,500–$2,000 a year only pay off a purchase premium at a reasonable rate. The cheapest capable EVs now start under $40,000 (BYD Dolphin at $38,990) and the price gap to equivalent petrol cars has narrowed to a few thousand dollars in several segments — at which point the EV wins totally. A $15,000 premium, by contrast, takes 8–10 years of fuel savings to recover, which is longer than most people keep a car.
Two accelerators change this maths for many buyers:
- Novated leasing. EVs under the luxury car tax threshold are exempt from fringe benefits tax on a novated lease, which means the car and its charging can be paid from pre-tax salary. For a middle-to-high income earner this routinely saves four figures a year and is the single biggest EV incentive in Australia — model it with the novated lease calculator.
- Depreciation. Early EVs depreciated brutally. The used market has since matured, but check resale on the specific model — depreciation dwarfs fuel on any nearly-new car.
The verdict, honestly
- Home charger + solar or off-peak tariff: the EV wins decisively — fuel costs fall 80–95%.
- Home charger, flat tariff: the EV wins clearly — roughly a third of the petrol cost per km.
- Public charging only: the case largely evaporates; a hybrid may serve you better.
- Low kilometres (under ~8,000/year): fuel savings are small in dollar terms; buy on price, not fuel.
Run your own car, state and kilometres through the EV vs petrol calculator — it breaks down the crossover point where the purchase premium pays itself off.
Electricity tariffs, petrol prices and vehicle consumption figures are the July 2026 state averages used across our calculators (sources: AER, state fuel price monitors, manufacturer WLTP data). General information, not advice.