Fuel price spike drives EV interest

17 May, 2022

RAA says soaring fuel costs will drive increased interest in electric vehicles (EVs).

RAA future mobility expert Mark Borlace said it was inevitable motorists would look to EVs as an alternative as the price of crude oil climbs and increased costs flow through to the bowser.

In response to a surge in petrol prices – hitting an average of $2.20/l in Adelaide in March – the Federal Government cut the fuel excise by 20c/l for a six month period.  

However, Mr Borlace warned petrol prices could soar to $2.40/l once the excise cut ends.

“It’s certainly a possibility prices could rise this high at the bowser when the excise returns to its normal level,’’ he said.

“This too depends on the issues around oil supplies due to the conflict in the Ukraine.

“But the attraction of electric vehicles would certainly increase as fuel costs rise.’’

Mr Borlace said EVs powered in South Australia were particularly beneficial to the environment.

“Electric vehicles produce around 50 per cent less pollution than petrol vehicles in South Australia,’’ he said.

“This technology is especially effective in South Australia, as we produce the greenest electricity on mainland Australia through the extensive generation of solar and wind power.’’

Mr Borlace said RAA was working to improve the number of EV charging points across the state.

RAA has won a State Government grant worth more than $12 million to create a statewide network of EV charging points along highways, regional cities, tourist destinations and Adelaide suburbs.

Over the next two years, with partner Chargefox, we’ll be installing more than 530 EV charging points at 140 charging sites to create the state’s first EV charging network. More than three-quarters of the new charge points will be in regional SA.