Is it cheaper to drive an electric or fuelled car?

The short answer is EVs are significantly cheaper to run. How much an electric vehicle (EV) costs to charge depends on a range of factors, including where you charge the car, the type of charging station you use, the price of electricity, and what time you charge. Still, in 2023, charging an EV is almost always cheaper than filling a car with petrol.

Overall, there is a 70% saving in fuel/electricity costs and around 40% in maintenance costs. For an average car travelling 13,700 km per year, it could be $1,000 in fuel/electricity costs or $1,200 if the EV is charged overnight on an off-peak tariff.

Drive’s 2023 Ownership Costs survey has confirmed what EV owners already knew: electric vehicles may be more expensive to buy, but they are definitely cheaper to live with.

Conclusion:

The Drive Survey revealed that Australians spend $4,815 per year on average to keep their fueled vehicle running. Fuel accounts for up to 38% of that, or an average of $1,830 annually. Comprehensive insurance is the second-biggest expense, taking $1,685 (35%), followed by vehicle registration at $867 (18%) and servicing costs at $433 (9%). 

The data revealed that driving an electric vehicle will save you between $1320 every year on average compared to petrol, diesel and hybrid-powered cars.