Electric vehicles are the future on Australia’s path to net-zero emissions, and they can also help make significant cost-of-living savings today, writes Carola Jones, CEO of EV charging solution company Everty.
You may have seen an electric vehicle drive past and wondered, “Is it worth the cost? Am I missing out by not having one?”
While electric vehicle sales remain small compared to the overall automobile market in Australia, the growth of EV production and market share is steadily increasing.
According to Transport NSW, the average EV can save drivers $1000 in fuel per year, which equates to a savings rate of 70 per cent compared to combustion vehicles. EVs are also significantly cheaper to maintain, costing 40 per cent less in upkeep compared to regular cars.
EV drivers can expect to get more than just upfront savings from their initial purchase. Not only will Australian consumers benefit from a cleaner, greener environment, they’ll enjoy more money in their back pocket as their investment pays itself off.
It is predicted that price parity between petrol cars and electric cars could be achieved by 2030, closing the gap between vehicle types for the first time since their inception, making EVs the more attractive option overall.
Soaring cost of living
According to a recent survey by mental health and wellbeing support organisation Beyond Blue, almost all Australian households are feeling the pressure of price rises, with 90 per cent of respondents stating they have observed their expenditures and living expenses rise. This has been a direct result of Australia’s inflation rate rising to 6.8 per cent in the past 12 months, spurred on by high construction costs and petrol costs.
The rise in petrol costs can be attributed to the end of the temporary fuel excise cut, with the full excise rate of 46 cents per litre now restored. Households that are already juggling increased rent, mortgage repayments and other soaring cost-of-living expenses are now having to deal with inflated costs at the fuel pump.
To make matters worse, the Saudi Arabian-led Organization of the Petroleum Exporting Countries (OPEC) collective’s decision to cut members’ oil production by two million barrels per day will create a ripple effect that will entrench higher fuel prices worldwide.
This oil output cut will certainly have a far-reaching economic effect by keeping inflation elevated for longer and forcing the Reserve Bank and other major banks to impose more stringent controls, which will intensify the chance of a global recession and continued price hikes.
How can EVs benefit family budgets?
The silver lining in these recent developments is Australians have an opportunity to tap into more sustainable alternatives such as electric vehicles. Private industry, state governments and the Federal Government are already working together to lay down the EV infrastructure needed to accommodate at least 1.7 million electric vehicles by 2030, and the foundations are being put in place to facilitate more renewable energy sources to power the transition.
The icing on the cake is that uptake of sustainable alternatives such as EVs will reduce our vulnerability to global supply chain issues and create more certainty for the economy and for consumers who want to have tighter control over their budget.
Top ways EVs can save you money
Renewable energy is much cheaper than a tank of fuel: According to Australia’s Electric Vehicle Council, fuelling an electric car is around 70 per cent less expensive than fuelling a similar car with an internal combustion engine, which can save EV drivers, on average, $1000 in fuel costs annually. Plus, for people with solar power at home who can produce and store their own energy, the real cost of powering an EV can come down to zero.
Lower maintenance costs: EVs are significantly lower in cost overall because of their reduced routine maintenance timetable. EVs require little upkeep compared to combustion vehicles, which means substantial savings in repair and maintenance bills. EVs usually only need tyre pressure adjustment and tyre rotation, and the replacement of tyres and windscreen wipers over time.
Increased fuel security and infrastructure stability: In February 2021, ExxonMobil announced it would close its Altona refinery in Melbourne, bringing Australia’s total refinery capacity down to just one. The decision to let Australian oil refineries close was one of the factors that paved the way for price increases and shortages of oil, and highlights our vulnerable dependence on these imported goods. The move to EVs does away with these concerns, as the electricity used by them is produced from conventional methods on Australian soil, or green technologies such as wind and solar.