Rising Fuel Costs Spark Greater Interest in Electric Cars Says Skoda

Australia is seeing a noticeable uptick in interest in electric vehicles, driven in part by rising petrol and diesel prices following geopolitical tensions in the Middle East. According to Skoda Australia, one of the country’s newer sellers of battery-powered vehicles, more consumers are exploring EVs as a way to mitigate the impact of higher fuel costs.

Skoda Australia director Lucie Kuhn told Drive that while enquiries and online searches for electric vehicles have surged, converting that interest into actual sales remains a challenge.

“We are definitely seeing more attention,” Kuhn said. “Whether this interest will maintain its current level is uncertain. But the conflict in the Middle East has clearly contributed to heightened curiosity about electric cars in the Australian market.”

Fuel prices have escalated sharply in recent weeks. Since early March, the cost of 91-octane petrol increased from 219.5 to 238 cents per litre, while diesel climbed from 245.6 to 282.4 cents per litre. Premium unleaded petrol in some capital cities is approaching $3 per litre, and diesel has surpassed this price in many regions.

This surge in fuel costs is mirrored by rising online activity: searches for electric vehicles on the Pickles auction website jumped by 111 per cent over three weeks, and motoring group RACV reported a 190 per cent increase in electric car-related searches.

However, Kuhn emphasized that prospective buyers are largely still in the evaluation stage. “Buying an electric car is a significant step. Customers are exploring options, assessing what’s available in the market, and considering how it will fit into their daily routines. This careful approach is actually a positive sign for long-term adoption.”

The impact of geopolitical events on EV demand will likely become clearer once March’s new-car sales figures are released. Fuel prices only began climbing in early March after the first US and Israeli attacks on Iran at the end of February (Australian time), so any influence on sales data is expected to appear in the current month.

Even before the recent price surge, EV sales were on the rise. February 2026 saw a 95.9 per cent increase in electric car sales compared to February 2025, aided by a rebound in Tesla deliveries following a slower start to last year. Government incentives, such as the fringe benefits tax exemption for novated leases on electric vehicles, are also helping to make EV ownership more appealing.

While interest in electric cars is growing quickly, the transition from curiosity to purchase remains gradual, reflecting the broader adjustment required as Australians consider switching from traditional petrol-powered vehicles to battery-electric alternatives.

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Original Article Source: Drive