Petrol vs Electric Running Costs in Melbourne 2026: Which Is Cheaper — And What to Do With Your Old Car
Melbourne drivers are asking the same question more often in 2026: is it actually cheaper to run an electric car than a petrol one? With fuel prices bouncing around $2.00–$2.20 a litre and electricity plans varying widely across the city, the answer isn’t as simple as EV marketing makes it sound — but the numbers do tell a clear story. Here’s the real, current breakdown for Melbourne drivers, and what it means if you’re still driving a petrol car.
Charging an EV at home in Melbourne typically costs less than half what it costs to run a comparable petrol car per kilometre — but the full picture (purchase price, servicing, insurance, depreciation) is more balanced than the fuel comparison alone suggests.
Melbourne unleaded (ULP) prices have been sitting in a weekly retail cycle through 2026, typically ranging from around $1.90/L at the cheap end of the cycle to $2.20–$2.30/L at the peak, with an average close to $2.05–$2.10/L.
For a typical mid-size petrol car using around 8.5L/100km:
EV running costs depend heavily on how and where you charge — home charging is where the real savings show up.
| Cost Category | Petrol Car | Electric Vehicle |
|---|---|---|
| Fuel/Energy (per year, 15,000km) | ~$2,600–$3,300 | ~$800–$1,600 (home charging) |
| Servicing (per year) | $700–$1,200 | Often under $300 |
| Registration (VIC) | $700–$950 | $700–$950 (largely equal) |
| Insurance (per year) | Lower | $400–$800 more than petrol |
| Purchase price | Lower upfront | $5,000–$20,000 higher upfront (narrowing) |
Net result: over a 5-year ownership period at average Melbourne driving distances, most mainstream EVs come out several thousand dollars ahead of an equivalent petrol car — but the gap is smaller than fuel savings alone suggest, once you factor in the higher purchase price and insurance premiums.
If you’re weighing up whether to hold onto your current petrol car or make the switch, a few things are worth thinking through:
If the running-cost comparison has got you thinking about switching to an EV – or your petrol car is just getting too expensive to keep on the road – you don’t have to leave it sat in the driveway losing value. At My Car Wreckers in Melbourne, we pay cash for your petrol cars in any condition, running or not. We do all the paperwork and free car removal Melbourne-wide.
Whether you’re upgrading to an EV or just ready to move on from an ageing petrol car, turning it into cash is often the simplest first step.
Is an EV cheaper to run than a petrol car in Melbourne?
Yes, on energy costs specifically — home charging is typically less than half the cost per kilometre of petrol. Once servicing, insurance and purchase price are included, EVs are usually still cheaper over 5 years, but by a smaller margin.
How much does it cost to charge an EV at home in Melbourne?
On a flat electricity tariff (~$0.32/kWh), most EVs cost roughly $4–$7 per 100km to charge at home, compared to $17–$19 per 100km for an average petrol car at current Melbourne fuel prices.
Is EV insurance more expensive in Melbourne?
Generally yes. EV insurance premiums currently run $400–$800 higher per year than petrol equivalents, largely due to battery repair costs and a smaller pool of specialist repairers.
Should I sell my petrol car before switching to an EV?
Many people do, particularly if the car is older or costing more in servicing each year. Selling to a cash-for-cars buyer avoids the hassle of a private sale and gets the car off your books immediately.
