Electric Vehicle demand surges as drivers slapped with astronomical fuel prices amid Middle East conflict

As local stockpiles of fuel deplete, so too does drivers’ loyalty to petrol cars. Demand is already surging for electric vehicles as commuters cop fuel prices of more than $2 a litre and face uncertainty with how long the associated financial pain will last. Devout EV owners are lapping up paying less than a quarter of what petrol cars cost to run, spending loose change on weekly travel compared to the $100-$120 forked out on fuel costs. Tesla claims Australian orders are through the roof and EV drivers, while disturbed by the overseas conflict, are glad serious attention is finally being turned to sustainable transport. Tesla Owners Club Western Australia chair Harald Murphy is encouraging of the uptake, but like most, is nervous for industries reliant on petrol to operate. “Obviously an EV owner doesn’t have to worry about the volatility of supply, but that’s no reason to be smug or self righteous,” he says. “In fact, deciding to buy an EV shouldn’t be made on a whim because of a short term volatility in fuel supplies. Buying an EV these days is a no brainer on all metrics, whether it be price, reliability, cost to run or convenience.” Mr Murphy bought his first EV, which he describes an iPad on wheels, in 2017 because of its technological offerings. “On top of that, cost and environmental advantages are quite a quite significant,” he says. “I’ve got solar at home so I’ve got the luxury of being able to charge it on solar, which means it’s energy cost approaches zero. But even if I was using grid power, it’s a quarter of the price of fuel.” Mr Murphy won’t need to worry about energy supply or if restrictions are introduced, but he knows the broad impact of fuel shortages won’t discriminate. “It doesn’t matter how well insulated an EV owner may feel about a shortage of fuel, it is going to affect all of us via the economy and consumer prices.,” he said. “I fear for farmers who are struggling to get supplies of diesel so they can commence their cropping regime, and that’s a great concern.” Prices of EVs will stay stable in the face of surging demand, according to Swinburne University professor of Transport Technology and Sustainability Hussein Dia. “A dramatic increase in demand could put some short-term pressure on supply, but the global EV market is becoming more competitive each year,” he said. “Those trends generally place downward pressure on EV prices over time. So while short-term fluctuations are possible, the long-term trend has been towards greater affordability.” EV retailers maintain that increased demand won’t see prices lifted. “Tesla has seen an increase in sales activity from the beginning of 2026. In the recent week, there has been a shift in the customers decision making process which is now quicker to decide to make the purchase,” a Tesla Australia spokesperson says. “Tesla maintains a steady and available supply of vehicles from our Gigafactory in Shanghai for Australia and New Zealand. There are no plans to alter pricing.” Similarly, Polestar reports an increased interest in its EV offering. “Over the last few weeks, we have certainly seen building interest in the Polestar brand, and people wanting to know more about our vehicles,” Polestar Australia managing director Scott Maynard says. “However, it really is too early to say whether this will translate to an uplift in vehicle sales,” The brand will avoid price increases, saying it will not “seek to take advantage of what is clearly an incredibly difficult situation for so many”. Electric Vehicle Council data shows a 99 per cent sale increase last month compared to a year prior, with Tesla selling 3274 new cars and Polestar selling 145. The brands’ combined sales for January and February are 61 per cent higher than the same time last year. For former Australian Electric Vehicle Association WA president Chris Jones, driving EVs was the best way to avoid being victimised by volatile oil prices. “We can meet all of our transport needs with locally produced Australian electricity. Even better, if it’s coming from renewables so it’s practically free,” Mr Jones says. “It’s a surefire way to ensure that we can avoid being hamstrung by international fossil fuel prices. It’s not an energy crisis, it’s a fossil fuel crisis. There’s energy everywhere.” Mr Jones saves about $3500 a year by driving an EV and warns consumers against being put off by their initial price tag. “The energy payback, or the emissions payback on an EV, happens very quickly, within within three or four years.” Professor Dia says though EVs “can help reduce exposure to petrol price volatility because electricity prices tend to be more stable than global oil markets,” various elements play into consumer decisions. “Sharp increases in petrol prices often make people think more seriously about alternatives,” he said. “However, vehicle purchasing decisions are complex and influenced by many factors including upfront price, charging access and consumer confidence, so any shift in demand tends to happen gradually rather than overnight.” New battery EV car sales last month hit a record 11.8 per cent, and used EV searches jumped 30 per cent in a single week according to Rewiring Australia. Chief executive Francis Vierboom estimates instability from the Middle East conflict could add $700 a year to petrol car drivers’ fuel costs which they could avoid entirely with an EV. Mr Vierboom implored the Federal Government to continue tax-free benefits on novated leases of EVs, which is active until the end of March but currently under review. “Every new EV sold today on a novated lease is an affordable ex-rental car for an Australian family in five years,” he said. “Kill the new market now and you strangle the second-hand pipeline that would have made EVs more accessible to everyone.” EV drivers however report major shortfalls in Western Australia’s EV charging network, and with no plan for upgrades, the State Government is accused of “planting a flag, declaring victory and walking away”. “The WA EV network, which was planned and built by the WA Government, initially showed so much promise, but sadly has descended into being beyond farcical,” Mr Murphy said. Drivers often have to “run the gauntlet” between charging stations, unsure of the quality or charge time that will await them at each, he said. “Sadly, there’s nothing that the State Government seems to be interested in doing about it,” Mr Murphy said. Improvements across the network are being implemented, according to the Department of Water and Environmental Regulation — including to the Horizon Power chargers. “The State Government has delivered the $23 million WA EV Network and continues to support the delivery of publicly accessible charging stations through the $15m Charge Up Grants program,” a department spokesperson said. “The program is co-funding the installation of EV chargers across more than 480 locations. These investments have opened up long-distance EV travel across WA, providing a new service in some of the toughest conditions in the country. “Work is ongoing to strengthen reliability of remote chargers, including through Horizon Power working with roadhouse operators and EV charger manufacturers to improve charger reliability and reduce local constraints on energy supply. “Future EV charging needs are currently being considered through the development of a WA EV Charging Infrastructure Strategy.” Meanwhile, suffocating fuel prices are causing anxieties for those planning road trips over Easter. The four-week trip from Broome to Perth for Anne Millard and her husband, Ian, hinges on how dire fuel supplies become. “We had to cancel this trip once before and this time it’s to celebrate my 60th,” she said. “I decided I wanted to do this with my husband instead of having a party or travelling overseas or something.” The couple is flying in from Sydney and will lose thousands if they have to cancel. “It’s going to be more expensive and we will have to think about a fuel stops a little if people report low fuel supplies. It’s a tad frustrating,” she said. Panic buying is being blamed for shortages, with Treasurer Jim Chalmers this week saying fuel stocks are continuing to arrive on time and in expected quantities, despite one-fifth of the world’s oil blocked at the Strait of Hormuz.