A self-described car enthusiast with a long-held passion for combustion engines, Matt Hurlston never wanted an electric vehicle.
Until a week ago.
“My son was getting his diesel [car] serviced, and he was complaining about the price of fuel, so I went home, opened up my phone, put my credit card in, got the finance done and bought an EV,” says Hurlston, who lives in Melbourne’s south-east.
“Petrol was already expensive when I was considering a purchase, and then as fuel prices kept going higher, it was an easy decision.”
Sales of electric vehicles have been rocketing in Australia ever since the US-Israel war on Iran unleashed a global energy shock that has sent oil prices soaring and raised the prospect that fuel could be rationed.
Car yards are reporting a sharp increase in sales of EVs and hybrids, while brokerage firms are seeing a spike in loan applications for electric vehicles, and used EVs are attracting strong bids at auction houses.
Hurlston, who ordered a Tesla last week and is awaiting its delivery, says he didn’t like his first experience driving the EV, but bought one anyway.
Sign up for the Breaking News Australia email“I drove the Tesla and said to myself it’s definitely not for me. It was a bit of a novelty, a bit like being in a computer game,” says Hurlston.
“I had to change my way of thinking and accept it’s a different experience; teaching an old dog new tricks. It is cheaper to run, more convenient to run, with the added bonus of no vehicle emissions.”
There were more than 454,000 battery electric and plug-in hybrid electric vehicles (PHEVs) in Australia at the end of 2025, according to the Electric Vehicle Council, with the EV market share climbing to about 13% of new purchases.
Eligible EVs are also exempt from fringe-benefits tax, which has helped drive sales in recent years.
Given a typical petrol car travelling 15,000km a year might consume about 1,150 litres of fuel, the current EV fleet could be saving the country more than 500m litres of petrol a year; although the fuel consumption of PHEVs does vary widely depending on the vehicle type and how they are used.
Auction house Pickles is on track to record one of its biggest ever months for EV sales, with an increase of about 20% on last month.
Those aged between 31 and 40 are the most active EV buyers, according to Pickles, a trend that likely shows young, busy families are trying to cut fuel costs from their regular commutes.
Brendon Green, general manager of automotive solutions at Pickles, says buyers are getting more confident buying secondhand EVs.
“Rising petrol prices are likely part of that equation, as they tend to sharpen consumer focus on running costs and make EVs a more compelling option,” says Green.
Regular unleaded petrol has now pushed to about $2.50 a litre across large parts of the country, while diesel prices are approaching $3 a litre.
While oil prices rose after the initial strikes against Iran, the increases were capped by the assumption the conflict would be short-lived.
Oil prices then escalated towards levels not seen since 2022 over concerns the US does not have a clean exit strategy that can guarantee a stable resumption of the oil trade, and other freight, through the crucial strait of Hormuz.
James Voortman, chief executive of the Australian Automotive Dealer Association, says the previous jump in oil prices sparked by the Russian invasion of Ukraine had prepared motorists to buy an EV as soon as they saw petrol prices spike again.
“This oil shock shouldn’t be looked at in isolation,” Voortman says. “People were ready to buy EVs.”
Loan Market asset finance specialist, Will Hamer, says petrol prices are prompting customers to rethink long-held purchase habits.
“It’s forcing a deeper conversation and people are pivoting on what they have been used to buying,” says Hamer. “We are seeing the average sort of professional move from the medium or small SUV to a full electric option.
“It makes no sense to buy a petrol or diesel car at the moment. If you are in that cycle of buying a vehicle, which could be once every five to seven years, it would be crazy not to explore electric options.”
Hurlston says while the EV will be his “workhorse”, he hasn’t given up on petrol vehicles.
“I’ve got a classic Holden sitting in my garage, so I will still have the opportunity to go pay a lot for petrol,” the 49-year-old says.
