The Liquid Gold Rush: Driving The EV Boom

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When the cost of refilling your car’s petrol exceeds your weekly rent, it becomes clear that what once was a routine expense, has turned into a financial burden. Recent global tensions; US-Israel war has disrupted oil supplies resulting in fuel prices soaring towards $3 per litre in Australia and nearly $4 per litre in New Zealand. As petrol has become increasingly scarce, many Australians are forced to reconsider their mode of transport. In response, electric vehicles (EVs) are emerging as a long-term cost efficient and practical alternative, shifting the way we power our transport. 

Iran has effectively blocked the Strait of Hormuz, one of the world’s busiest oil supply routes, since the US-Israel joint operation into Iran. Approximately 20% of the world’s oil and liquefied natural gas flows through the strait, and war-related disruptions have restricted oil supply, driving global fuel prices upwards. Before the war outbreak, around 138 ships passed through the strait each day. However, after the US intervention, only an average of 5-6 vessels passes each day. Boats and commercial vessels are increasingly hesitant to travel through the strait due to the possibility of threats such as drones, missiles and naval mines. BBC News has been able to verify 20 attacks on commercial vessels off the Iranian coast as of 20th March. 

Australia feels the pressure 

The consequences of the war have really hit Australia hard. As of late March, Australia is left with about 29-38 days left of fuel reserves, stirring up anxiety about long-term availability. This uncertainty has sparked panic buying, with over 100 petrol stations in regional Victoria completely out of petrol. As fuel prices continuously climb, the cost of living rises in tandem, affecting transportation, goods and services. The Reserve Bank of Australia responded to this crisis by increasing the cash rate by 25 basis points in March 2026; from 3.85% in February 2026 to 4.10% in March 2026. Faced with these challenges, Australians are now reconsidering their reliance on petrol and exploring more stable, long-term alternatives. 

EVs have quickly become a hot topic in conversations as a more appealing and viable option amidst the crisis. With uncertainty surrounding fuel availability and affordability, interest in EVs has significantly increased. Data obtained from carsales.com.au shows that searches for EVs have almost tripled this month compared to late February. The scarcity of fuel is reshaping the way Australians perceive EVs, as 9News has found that over half of Australians (55%) would now consider purchasing an EV, an increase from just over a third last November. What was once considered a niche and unreliable option is now entering the mainstream as a feasible solution to address the instability of fuel prices and economic uncertainty. 

Are EVs worth it? 

Although the upfront costs of purchasing electric cars may be a major expense for many Australians, the upsides of owning an electric car has become more prominent during this time, as fuel costs savings and state and utility incentives offset this cost. Studies from Canstar have found that electric vehicles cost around $500 a year to recharge, compared to a petrol car costing around $2500 a year to fill up (the average price before the current spike in fuel prices). For environmentally conscious Australians, switching to EVs is environmentally friendly, producing zero tailpipe emissions and contributing to efforts to combat climate change. As sustainability becomes a greater priority, this factor carries increasing weight for consumers.

Backed with extensive research and rapid advancements in technology, previous perceptions concerning the safety and reliability of EVs are gradually shifting. Modern EV batteries are more efficient, longer-lasting and have undergone rigorous safety testing — significantly improving opinions on EVs. With more and more service stations in cities, towns and regional areas providing charging infrastructure, EV ownership is becoming increasingly convenient than ever. 

As fuel prices continue to rise and supply remains uncertain, is the shift to electric vehicles no longer a choice, but a necessity? 

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References:

Barrett, J. (2026, March 25). “Crazy not to”: soaring fuel prices send more Australians into U-turn towards electric cars. The Guardian; The Guardian. http://theguardian.com/australia-news/2026/mar/25/electric-cars-sales-increase-vehicle-ev-hybrid-australia-fuel-prices

Brischetto, P. (2026, March 24). Searches for electric vehicles on major car sales site triple as fuel costs soar. @9News; 9News. https://www.9news.com.au/national/rising-fuel-prices-more-australians-turning-to-electric-cars/7aa68b0c-2ded-4ac2-ab96-cd99046b444b

Hodges, P. (2026, March 22). Strait of Hormuz closure starts to have major economic impact - Chemicals and the Economy. Chemicals and the Economy. https://www.icis.com/chemicals-and-the-economy/2026/03/strait-of-hormuz-closure-starts-to-have-major-economic-impact/

Administration. (2026, March 13). What happens when Australia’s 36-day petrol supply runs out? The Lighthouse. https://lighthouse.mq.edu.au/article/2026/march-2026/could-australia-run-out-of-petrol

More than 100 petrol stations run out of petrol across Victoria, energy minister says. (2026, March 24). Abc.net.au. https://www.abc.net.au/news/2026-03-24/victorian-petrol-stations-run-out-diesel-fuel-iran-conflict/106489808

Devlin, K. (2026, March 20). Strait of Hormuz: Which ships are passing through? https://www.bbc.com/news/articles/c4geg0eeyjeo

Reserve Bank of Australia. (2025). Cash Rate Target Overview. Reserve Bank of Australia. https://www.rba.gov.au/cash-rate-target-overview.html

U.S. Department of Energy. (2024). Alternative Fuels Data Center: Electric Vehicle Benefits and Considerations. Afdc.energy.gov; U.S. Department of Energy. https://afdc.energy.gov/fuels/electricity-benefits

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