Cutting the fuel excise could provide short-term relief for motorists but the best way to save money each day, month and year is by driving an EV, according to the Electric Vehicle Council.
The Coalition has pledged to cut the tax people pay at the bowser on petrol and diesel by 25c per litre for one year, estimating that a driver filling up a 55-litre car would save more than $700 during that period.
By comparison, electric vehicle drivers can save up to $3,000 every year by charging their car instead of filling up at the pump.
That’s because while the cost of petrol continues to rise, sitting at roughly $2 per litre now, charging your electric vehicle can be as cheap as 15 cents per litre.
The New Vehicle Efficiency Standard (NVES) which only came into force in 2025, incentivises car makers to bring the most fuel-efficient, low and zero emissions cars to Australia. Motorists still have the freedom to purchase whatever car they prefer - but the NVES is already working - offering them a greater range of options at increasingly lower prices.
Supporting the implementation of the NVES — and highlighting the money-saving options available now — is the best way to help motorists now and ongoing.
In May’s cost-of-living election, the best way to get immediate and ongoing savings, especially for those living in outer suburbs and regional areas, is to help Australians drive an electric car.
Electric Vehicle Council CEO Julie Delvecchio said: “In a cost-of-living election, all MPs and parties need to support measures that cut costs for Australian motorists as much as possible and for as long as possible. The most immediate and effective way to cut people’s bills is by helping them to drive more fuel-efficient cars, including EVs.
“Cutting the fuel excise may save motorists $700 for one year but switching to an EV saves more than four times that - up to $3,000 per year, every year.
“There are more than 300,000 voters driving EVs in our suburbs, including over 50 per cent of them in our outer suburbs and regions, who will be looking for MPs and parties that will help them to continue saving money.
“People living in the outer suburbs are leading the way in EV adoption - they generally drive more and recognise the substantial savings that come with electric driving. We should be accelerating the adoption of cheaper-to-run electric vehicles for all Australians, especially those in the outer suburbs and regions.
“We’re seeing EVs now for as low as $30,000, lowering upfront costs that have previously hindered Australians from making the switch. The NVES is saving Australians money at the pump as cars become more fuel-efficient and as more motorists switch to electric vehicles. There is no evidence that NVES is driving up new car prices, and penalties for high polluting cars don’t kick in until 2028.
“This May election is pinned on cost-of-living - Australians are looking for bold and lasting measures that will keep their costs down for good. Supporting greater uptake of battery electric vehicles and plug-in hybrid electric vehicles through incentives and through the New Vehicle Efficiency Standard will achieve this.”
Media contact: Sofie Wainwright 0403 920 301