Australian EV Sales Surge 20% as Fuel Crisis Converts Sceptics Into Buyers

Matt Hurlston calls himself a car enthusiast with a long-held passion for combustion engines. A week ago, he bought a Tesla. His son was getting his diesel car serviced and complaining about the price of fuel, Hurlston told reporters. So he went home, opened his phone, applied for finance, and ordered an EV the same day.

Petrol was already expensive when he started considering the purchase. When prices kept climbing, the decision became easy. Hurlston admits he did not love his first experience driving the Tesla — he described it as being like a computer game, a bit of a novelty. But the economics won out over the driving experience.

The numbers at the car yards

Hurlston's experience is playing out across thousands of Australian households. Auction house Pickles is on track to record one of its biggest ever months for EV sales, with volumes running approximately 20% higher than last month. Brendon Green, general manager of automotive solutions at Pickles, says buyers are getting more confident purchasing secondhand EVs.

Rising petrol prices are likely part of that equation, as they tend to sharpen consumer focus on running costs and make EVs a more compelling option.

— Brendon Green, Pickles

The data shows buyers aged 31 to 40 are the most active EV purchasers. That demographic likely reflects young families trying to cut fuel costs from regular commutes — the school run, the daily drive to work, the weekend errands that add up quickly when petrol costs $2.50 a litre.

The fuel price reality

Regular unleaded petrol has pushed to approximately $2.50 per litre across large parts of the country. Diesel prices are approaching $3 per litre. A typical petrol car travelling 15,000 kilometres per year might consume around 1,150 litres of fuel. At current prices, that is nearly $3,000 per year in fuel costs alone.

The maths gets worse for anyone driving more than average. A tradesperson running a diesel ute for business use might burn through $400 or $500 per month in fuel. A two-car household with a combined 30,000 kilometres of annual driving faces fuel bills approaching $6,000 per year.

EVs do not eliminate those costs entirely — electricity is not free — but the running cost differential is substantial. Home charging at off-peak rates can cost less than a quarter of the equivalent petrol expense. Even public charging, which costs more, typically remains cheaper than petrol per kilometre.

The broader shift

James Voortman, chief executive of the Australian Automotive Dealer Association, says the previous oil price spike triggered by the Russian invasion of Ukraine had already primed consumers to act. This oil shock should not be looked at in isolation, he told reporters. People were ready to buy EVs.

Australia had approximately 454,000 battery electric and plug-in hybrid vehicles on the road at the end of 2025, according to the Electric Vehicle Council. The EV market share has climbed to about 13% of new vehicle purchases. Eligible EVs are also exempt from fringe benefits tax, which has helped drive adoption among fleet buyers and salary-packaged vehicles.

The existing EV fleet is already making a small dent in Australia's fuel consumption. A typical petrol car uses around 1,150 litres of fuel per year. Multiply that across 454,000 vehicles (acknowledging that PHEVs use some petrol) and the fleet could be saving more than 500 million litres annually.

The conversion of sceptics

Will Hamer, an asset finance specialist at Loan Market, says petrol prices are prompting customers to rethink long-held purchasing habits. The conversations with customers have changed, he says. We are seeing the average sort of professional move from the medium or small SUV to a full electric option.

It makes no sense to buy a petrol or diesel car at the moment. If you are in that cycle of buying a vehicle, which could be once every five to seven years, it would be crazy not to explore electric options.

— Will Hamer, Loan Market

Hurlston, the self-described car enthusiast, has not entirely abandoned combustion engines. He still has a classic Holden sitting in his garage, which he plans to keep for the occasional drive despite the cost. But the Tesla will be his daily workhorse, handling the regular trips that used to send him to the petrol station multiple times per week.

The fuel crisis has compressed what might have been a gradual shift over several years into a matter of weeks. Buyers who might have considered an EV for their next vehicle in 2028 are pulling that decision forward to 2026. The result is a demand spike that dealers and auction houses are scrambling to meet with available inventory.