EVs vs diesel: how far does $1 really go in 2026?

Rising fuel prices across Australia are sharpening the cost gap between electric vehicles and traditional diesel or petrol cars, with new analysis showing just how differently each performs on a per-dollar basis.

A growing body of data highlights that EVs are now significantly cheaper to run in day-to-day driving, particularly when comparing energy costs rather than upfront purchase prices.

The cost-per-kilometre difference

Recent comparisons using typical Australian fuel and electricity prices show a stark contrast in efficiency.

On average, a petrol or diesel vehicle can only travel a few kilometres for every dollar spent on fuel. That’s because rising diesel prices and relatively low fuel efficiency combine to push running costs higher, especially for larger SUVs and utes.

By contrast, an electric vehicle can travel many times further on the same amount of money spent on electricity. This is driven by lower electricity costs per kilometre and the much higher efficiency of electric drivetrains.

In simple terms, EV drivers are getting several times more distance per dollar compared with drivers of internal combustion engine vehicles.

Why EVs are cheaper to “fuel”

The difference comes down to energy efficiency. Electric motors convert far more of their energy into movement, while diesel engines lose a significant portion of energy through heat and mechanical inefficiency.

Charging costs also vary depending on how the electricity is sourced. Home charging- especially during off-peak times or using rooftop solar- can reduce costs dramatically compared with public fast charging or liquid fuel purchases.

Which EVs cost the least to run

Not all electric vehicles are equal when it comes to efficiency. Smaller, lighter EVs tend to use less energy per kilometre, making them the cheapest to operate overall.

Some of the most efficient models on the Australian market include compact hatchbacks and entry-level EVs, which typically cost only a fraction of a cent per kilometre to run compared with traditional cars.

Among popular models, smaller EVs consistently outperform larger SUVs and performance-focused electric cars in running cost efficiency.

What this means for drivers

While EVs can still have a higher upfront purchase price, the ongoing savings in energy costs are becoming increasingly difficult to ignore. For many drivers, especially those with access to home charging, the long-term running costs of an EV are now substantially lower than those of a diesel vehicle.

As fuel prices remain volatile, the gap between electric and diesel running costs is expected to continue widening, reinforcing the shift toward electric mobility in Australia.

Original Article Source: The Driven