Australians are flocking to electric vehicles. There’s a hidden cost

September 4, 2026 — 5:00am

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You can’t blame Australians for seeing fuel prices over the past few months and deciding to ditch their petrol-powered cars.

As Reserve Bank governor Michele Bullock pointed out at a recent press conference, petrol prices are one of the most visible — and therefore memorable — prices, with most of us passing a petrol station somewhere on our daily commutes.

While petrol prices have fallen from their peak of about $2.50 a litre in our major cities earlier this year, they’re still hovering at about $2 a litre after the government’s fuel excise discount ended in August. That’s about 20 cents more expensive per litre than the average petrol price across our major cities in 2025.

Fuel prices are significant — not just because they make up about 3 per cent of an Australian household’s spending — but because they affect how much it costs for businesses, especially in the transport, farming and aviation sectors, to provide their goods and services.

As we know, inflation, or price growth, is still a big challenge for the Reserve Bank (and many of us paying higher prices for everyday items). In the 12 months to July, prices across the economy grew 3.5 per cent — lower than the 3.8 per cent they were growing at in the year to June, but still well above the bank’s target range of 2 to 3 per cent.

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It’s a rational response for people to look for ways to save money. We know, for example, from the recent earnings season where Australian businesses reported their profits, that customers remain hungry for a bargain.

We also know from the most recent “national accounts” — which gives us a snapshot of the economy — that Australians revved up their spending on vehicles across March to June this year. But it wasn’t just splashing cash on any old........

© Brisbane Times