Two things happened within days of each other this August: the temporary relief on fuel excise ran out, and new car sales data showed electric and hybrid vehicles edging toward half the market. On their own, they’re just news items. Together, they’re a pretty clear signal about which way household transport costs are heading, and why more Australians are making the switch sooner rather than later. If you’ve been on the fence about an EV, or already have one but haven’t looked at charging it from solar, this is a good moment to run the numbers again.
Quick Summary
- The temporary fuel excise cut ended on 2 August 2026, and because the tax is indexed twice yearly regardless, pump prices are now back above where they started before the cut began.
- Electric, plug-in hybrid, and hybrid vehicles made up 49% of new car sales in the June quarter, the largest quarterly jump on record, with battery-electric vehicles more than doubling their sales share.
- Charging an EV from home solar, especially during free or discounted daytime electricity windows, can bring running costs down to a fraction of current petrol prices, and that saving isn’t tied to a government program that can be wound back.
Petrol is getting more expensive again
Back in February, conflict between the United States and Iran closed the Strait of Hormuz, a critical route for global oil shipments, and petrol prices spiked in response. The federal government introduced a temporary cut to the fuel excise (the per-litre tax on petrol and diesel) to soften the impact at the pump.
That relief ended on 2 August. Because the excise is automatically indexed twice a year regardless of other settings, the restored rate has actually landed slightly higher than where it started before the cut began in the first place. Treasurer Jim Chalmers confirmed the change was always intended as temporary cost-of-living relief, not a permanent fixture.
The result: fuel is getting more expensive again, with no clear sign that the trend will reverse given ongoing volatility in global oil markets.
Expert Tip: Don’t wait for the next price spike to start comparing running costs. Even a rough calculation using your actual weekly driving distance against current petrol prices versus a typical EV’s per-kWh cost usually makes the gap obvious within a few minutes.
Australians are switching faster than ever
New data from the Australian Automobile Association shows electric, plug-in hybrid, and hybrid vehicles made up 49% of all new car sales in the June quarter, the largest single-quarter jump the index has ever recorded.
Battery-electric vehicles alone more than doubled their sales quarter-on-quarter, pushing their market share past 21% and, for the first time since 2023, outselling hybrids outright. Combustion-engine cars fell to their lowest share on record, just over half of all sales, down from close to 90% when this index began tracking in 2022.
This shift isn’t happening at the expense of a shrinking car market either. Total new vehicle sales hit an all-time quarterly high. Australians didn’t buy fewer cars; they bought different ones. The same pattern is playing out globally too, with the International Energy Agency reporting EV sales hit records in 50 countries in the same quarter, naming Australia as a market where EV sales roughly doubled year-on-year.
Why solar charging changes the maths
A rising fuel excise makes petrol more expensive every time you fill up. Charging an EV from your own rooftop solar works the opposite way: once the system’s paid for, the “fuel” is close to free, and it isn’t subject to a future budget decision the way a tax relief measure is.
The maths gets even better if you’re on, or can switch to, a free daytime electricity plan. Several retailers now offer windows of free or heavily discounted grid power in the middle of the day, when solar generation is highest, and demand is lowest, which stacks well with EV charging even if your own system doesn’t fully cover it.
Pairing a home battery with solar and EV charging takes this further again, letting you store midday solar generation and use it to charge overnight, rather than drawing from the grid at peak evening rates.
Expert Tip: If you already have solar but haven’t added an EV charger yet, a smart charger that can be scheduled or app-controlled lets you automatically prioritise charging during your system’s peak generation hours, without needing to remember to plug in at a specific time.
What sits behind both changes
It’s not a coincidence that both stories are pointing in the same direction. In the same week the excise relief ended, the federal government also announced an expansion of the solar rebate scheme for commercial rooftops, a separate move, but one more sign that the broader shift away from fossil fuel dependency is accelerating across the board, not just in the car market.
For households, the practical takeaway is the same one that’s driven solar adoption for over a decade: the cost of standing still keeps going up, while the cost of switching keeps coming down.
Frequently asked questions
Will petrol prices keep rising after the excise cut ended? There’s no fixed answer, since pump prices depend on global oil markets as much as government tax settings. What is fixed is that the excise itself is indexed twice a year regardless of external conditions, so the underlying tax component will keep increasing incrementally.
Is now a good time to switch to an EV? That depends on your driving patterns, budget, and access to charging, but rising fuel costs combined with record EV sales and expanding model availability make it a reasonable time to run the numbers, particularly if you already have or are considering solar.
Do I need a home battery to charge an EV cheaply from solar? No. You can charge directly from solar generation during the day, or take advantage of free daytime electricity windows where available. A battery adds flexibility for overnight charging but isn’t essential to get started.
How much can solar realistically save on EV running costs? It varies by system size, driving distance, and electricity plan, but charging from self-generated solar, especially during free midday windows, can bring effective running costs down to a small fraction of current petrol prices per kilometre.
Key takeaways
- The fuel excise cut ended 2 August 2026, and because of routine indexing, the restored rate landed slightly above where it started before the cut began.
- EV, hybrid, and plug-in hybrid sales hit a record 49% of new car sales in the June quarter, with battery-electric vehicles more than doubling their market share.
- Solar-charged EVs sidestep rising fuel costs entirely, and pairing solar with free daytime electricity windows or a home battery can push running costs even lower.
- The same policy direction, away from fossil fuel dependency, is showing up in transport and in solar incentives at the same time, suggesting this is a structural shift rather than a one-off news cycle.
The post Petrol’s Getting Pricier, EVs are Selling Faster: What August’s Policy Shift Means for Your Home appeared first on Energy Matters.
