Question 1

What is the average fuel consumption for Australian cars?

Accepted Answer

The average fuel consumption for new passenger vehicles sold in Australia is around 7.5–9.0L/100km. Small city cars typically use 5.5–7.5L/100km, medium sedans 7–10L/100km, SUVs 8–12L/100km, and large 4WDs 12–16L/100km. Hybrid vehicles average 3.5–5.5L/100km. Your real-world consumption depends heavily on driving style, air conditioning use, terrain, and whether you drive mostly city or highway.

Question 2

Why do petrol prices vary so much between states?

Accepted Answer

Australian petrol prices vary by state due to differences in state-based taxes (including fuel tax credits), distance from refineries, competition levels, and whether the state has a pricing cycle. Sydney and Melbourne tend to have more competition and regular price cycles, while Darwin and Hobart (with fewer petrol stations and longer supply chains) typically pay more. Remote areas can pay significantly above capital city averages.

Question 3

How do I find my car's official fuel consumption?

Accepted Answer

Check your car's official fuel label from the Green Vehicle Guide (greenvehicleguide.gov.au). This shows combined city/highway consumption in L/100km. Note that real-world figures are typically 20–30% higher than the official test figures, especially in city driving. Your car's trip computer is a reasonable guide to actual consumption.

Question 4

Does the ATO reimburse employees for fuel costs?

Accepted Answer

The ATO cents-per-kilometre method for 2025–26 is 88 cents per kilometre for work-related car use (up to 5,000 km). This covers all car running costs including fuel, registration, insurance, and depreciation. Alternatively, you can claim actual costs using the logbook method if you keep a 12-week logbook showing work use percentage. Speak with an accountant about which method suits your situation.

Question 5

Are electric vehicles cheaper to run than petrol cars?

Accepted Answer

Yes, significantly cheaper per kilometre. An EV using 18kWh/100km at $0.30/kWh costs around $5.40/100km to run. A petrol car using 9L/100km at $1.90/L costs $17.10/100km — more than three times more expensive. The higher upfront cost of EVs typically pays back in fuel savings within 5–8 years, depending on annual mileage and electricity rates. Home charging overnight dramatically reduces running costs.

State	Avg price (ULP 91)	Cost per 100km*
NSW	$1.89/L	$17.01
VIC	$1.85/L	$16.65
QLD	$1.82/L	$16.38
WA	$1.88/L	$16.92
SA	$1.87/L	$16.83
TAS	$1.92/L	$17.28
ACT	$1.86/L	$16.74
NT	$1.95/L	$17.55

Fuel Cost Calculator Australia

Average petrol prices by state (2026)

Annual running costs by vehicle type

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