New EV drivers will save $76m after Iran war fuel spike, data reveals

Australians who switched to an electric car in the first half of 2026 following the US and Israel’s February attack on Iran will save an estimated combined $76m on fuel by the end of the year.

A National Automotive Leasing and Salary Packaging Association report found drivers who purchased a battery EV with a novated lease and support from the federal government’s Electric Car Discount between January and June 2026 would also continue to save a combined $103.6m per year from 2027 onwards if fuel, which shot up after Iran de facto closed the Strait of Hormuz, remained at $2.10 per litre.

NALSPA chief executive Rohan Martin said drivers switching from the fuel pump to the electric charger during the fuel crisis not only saved money but were “strengthening our national energy security”.

“These savings mean more money stays in local economies instead of flowing to overseas energy suppliers,” he said.

“More money in Australians’ pockets gives families extra room in their household budgets to cover everyday essentials during the ongoing cost-of-living crunch.”

As more Australians adopted an EV, it would also assist with long-term downward pressure on inflation, Mr Martin said.

Victoria leads the way with the most new EVs purchased between January and June.

Drivers in the Education State were expected to save a combined $22.2m on fuel alone by Christmas.

NSW is second with $22.02m expected to be saved, followed by Queensland at $16.03m.

By the end of the year, NALSPA estimated workers who purchased an EV on a novated lease and with the discount since July 2022 would have saved a collective $609m.

Brian McMartin, who works in rail and lives in the southwestern Sydney suburb of Minto, purchased a Chinese-made BYD electric vehicle in early January.

“Saving on petrol was one of the reasons why I bought it. Fuel was already pretty pricey before the big price spikes from the Middle East conflict,” he said.

“I’ve been very happy saving money on petrol, especially this year with prices going up. I was spending between $70 and $80 a week on fuel and that was before the price hikes.”

“With two young kids at home, there’s not a lot of spare cash to go around, so not having to pay for petrol has certainly made life easier,” he said.