31 Mar 2026

Fuel prices are rising. Is now the time to switch to an EV?

If your weekly fuel bill has started to put a strain on your household budget, you’re not alone.

Across Australia, rising petrol and gas costs are adding to our cost-of-living pressures, and for many drivers it’s becoming the tipping point: the moment when switching to an electric vehicle (EV) stops being a ‘one day’ idea and becomes a priority.

Why more Australians are making the switch now

Unlike petrol or diesel vehicles, electric cars aren’t tied to volatile fuel prices. Charging at home or work could offer more predictable running costs if we continue to see higher prices at the bowser.

That’s why it’s no surprise that EV demand can increase when fuel prices climb. According to The Guardian, even modest increases in petrol prices can accelerate EV consideration and adoption for some buyers.

But it’s not just about fuel savings.

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Tax advantages may not last 

Right now, eligible electric vehicles obtained through a novated lease benefit from the Australian Government’s Fringe Benefits Tax (FBT) exemption (subject to eligibility criteria and caps). This can reduce the after-tax cost for some drivers by allowing a portion of costs to be salary packaged. 

But with the government currently undertaking a review (see our recent blog post), the current discount could be scaled back or repealed altogether. 

If the FBT discount is an important factor for you, acting sooner rather than later may help you take advantage of the current exemption. 

A smarter way to drive... and save 

When you combine:

• Determining the driver’s immediate needs, arrange a tow truck, and a replacement vehicle if needed
• Lower running costs (no petrol required)
• Potential tax savings through a novated lease
• Greater cost predictability

…it becomes clear why more Australians are making the switch to electric right now.

See what you could save

If you’ve been feeling the impact of rising fuel costs, it could be the perfect time to explore your options.

Use the obligation-free FleetPartners novated leasing calculator to estimate how much you could save with an electric vehicle, or get in touch with our team for a personalised quote or to learn more.