Australians are now buying electric and hybrid vehicles at the same rate as traditional petrol-powered cars, according to new data that shows EV sales doubled in the months after the peak of the fuel price spike.
Fuel prices are again on track to top $2 a litre, after the federal government’s fuel excise reductions – introduced to offset the impact of the ongoing crisis in the Middle East – come to an end on Sunday.
The federal treasurer, Jim Chalmers, said overnight that he had written to the Australian Competition and Consumer Commission asking for heightened scrutiny on fuel prices as the tax discounts are withdrawn.
The Australian Automobile Association (AAA) has released its latest EV Index, showing motorists pivoting to electric and hybrid options in the three months from April to June, coinciding with the period of instability in fuel prices.
Almost half of sales of new cars from that period were electric, plug-in hybrid or hybrid vehicles.
The market share of EVs (21.03%) and plug-in hybrids (10.58%) were both records.
Fuel prices peaked in March, amid instability in the Middle East that affected key supply routes.
Sign up for the Breaking News Australia emailThe federal government intervened on 30 March, announcing a fuel excise reduction that has provided some relief at the bowser.
Chalmers said in a statement the government’s actions had “helped take the sting out of petrol prices at their peak”.
He said the ACCC would not “step up its monitoring of fuel prices movements” as excise rates return to previous levels.
“Any price increase that can’t be explained will face serious scrutiny from the ACCC,” Chalmers said.
“Servos and suppliers are on notice. The regulator will be watching them like a hawk.”
The AAA’s figures show that sales of battery electric vehicles more than doubled in the second quarter of 2026 – up from from 34,435 in the first three months, to 69,414 between April and June.
The AAA says the increase is the largest-ever quarterly rise for electric vehicles.
Hybrid sales were also at an all-time high, but were overtaken by the surge in motorists purchasing EVs.
Sales of traditional internal combustion engine (ICE) vehicles fell from 64.23% in the first quarter to 2026 to 50.84% in the most-recent data. It is the lowest-ever market share for petrol-powered vehicles and their biggest-ever quarterly drop, the AAA says.
When the AAA’s EV index began recording data in 2022, ICE cars accounted for nine out of ever 10 sold.
