Soaring petrol prices force half of Australian drivers to cancel road trips

New research has revealed Aussies are cancelling road trips and driving less as soaring petrol prices continue to bite.

At the same time, many are now reconsidering electric vehicles to escape the pain at the bowser.

A new survey of more than 2000 drivers conducted by novated lease company Smart found almost half of respondents were avoiding long drives or cancelling road trips altogether to save money on fuel.

The findings come as motorists begin feeling the full impact of the recently scrapped federal government’s fuel excise discount.

The temporary cost-of-living measure was first introduced after the US-Iran conflict sent global oil prices soaring and put Australia’s fuel reserve under pressure.

Before the measure, Australians paid 52.6 cents in fuel excise for every litre of petrol. The excise was initially slashed by 32 cents a litre before being reduced to 16 cents in July. That final discount expired at midnight on Sunday.

Experts previously warned it would take about a week for a fuel price increase to flow through to service stations and it now seems motorists are seeing it at the pump.

According to FuelCheck, the average price for the cheapest unleaded petrol, E10, sits at 206 cents a litre, while diesel has climbed to 250.3 cents a litre.

Smart spokesman Michael Fairbairn says rising fuel prices were forcing Australians to rethink both their daily driving habits and holiday plans.

“We surveyed 2000 Australians, and they have basically come back to us and said they’re avoiding driving more regularly and they’re also considering or are cancelling road trips altogether,” Mr Fairbairn said.

“So, it’s impacting their daily driving behaviours, but also their holiday plans.”

The survey also found nine in 10 drivers are worried about fuel availability over the next six months, while a quarter fear the end of the fuel excise relief will push grocery prices even higher as transport costs rise.

It is a very similar trend that was first spotted when the US-Iran conflict first kicked off in early March.

Research looking into the flow-on effect it had on Aussies showed petrol consumption fell seven per cent in April and 10 per cent in May compared with the same period last year.

With the excise discount no longer in effect, Aussies are looking for a financial, future-proof solution to cut their running costs.

Director of Buying at Carma, Pete Willis, says that solution lies in electric vehicles, which are currently seeing a surge in demand driven directly by rising fuel prices.

“The new ABS data showing surging electric vehicle purchases drove a 3 per cent rise in transport spending, confirming Australian households are actively shifting budgets to escape fuel volatility,” he said.

“While new EVs dominate headlines, family-sized and long-range models still carry $45,000 to $65,000-plus sticker prices that sit out of reach for most everyday household budgets.

“We saw a 5.3-times year-on-year jump in EV searches, revealing buyers are turning to the pre-owned market as the realistic middle ground, enabling families to reduce daily running costs without taking on heavy new-car debt.”

That interest has meant electric vehicle sales have skyrocketed over the last 12 months.

Almost one in three new passenger cars, SUVs and light commercial vehicles sold in Australia during July was either battery electric or plug-in hybrid.

Australians purchased 23,510 battery electric vehicles during the month, accounting for 22.3 per cent of all new vehicle sales and more than tripling the market share recorded in July last year.

A further 10,359 plug-in hybrid vehicles were sold, taking total EV sales to 33,869 for the month.

Electric Vehicle Council chief executive Julie Delvecchio says Australians were increasingly turning to EVs as a way to ease household budgets.

“After a record end-of-financial-year month in June, we expected softer numbers in July. But the underlying trend remains clear: EV sales are well ahead of last year and choice is expanding across all car types and price points,” she said.

“For Australian households feeling the cost-of-living squeeze, going electric is real relief from rising costs, with around $3,000 a year saved on fuel and maintenance.”

Extracted in full from:  https://www.themercury.com.au/motoring/on-the-road/soaring-petrol-prices-force-half-of-australian-drivers-to-cancel-road-trips/news-story/5fbf4f1f206e90df1d434d4e0b254c90