Interest in electric vehicles is surging in Australia amid skyrocketing fuel prices and fear of potential shortages as the US-Israel war puts increasing pressure on international oil markets.

Research from several studies released this week shows more Aussies are considering buying an EV or hybrid vehicle, while those who have already made the switch report significant savings.

It comes as unleaded petrol prices have soared to more than $2.20 a litre and diesel to more than $2.60 a litre in parts of Australia, prompting consumer watchdog the ACCC to call an emergency meeting with major suppliers.

Twenty-five per cent of drivers are now looking at purchasing an electric vehicle, compared with just 7 per cent before the war began, according to a study conducted this month by Primara Research for renewable energy company green.com.au.

A separate survey by Primara found just over 70 per cent of Australians rated petrol and fuel supply as their greatest concern resulting from the instability in the Middle East.

“The Middle East crisis has fundamentally shifted the EV conversation from environmental choice to economic necessity,” said green.com.au founder Dave Green.

Compare the Market said on Wednesday that its latest survey found 54 per cent of Australians were considering switching to an electrified vehicle, including 22.5 per cent who wanted to change to “a more fuel-efficient hybrid vehicle”.

“The conflict in the Middle East is sparking more interest in full electric vehicles, with nearly one-in-three Aussies looking to make the switch, to curb rising fuel costs,” said Henry Man, a spokesperson for the price comparison website.

Reporting the results of the Primara research, EV Central website quoted one car dealer as saying interest in the vehicles was “going crazy”, with queues in the dealership.

Other car dealers have also seen a significant increase in EV inquiries and orders, according to James Voortman, CEO of the Australian Automotive Dealer Association.

“Clearly, current higher petrol and diesel prices and the perception that future oil shocks could occur will resonate with those consumers who may have previously been sitting on the fence in relation to purchasing an EV,” Voortman told the Australian Financial Review last week.

Some parts of Australia have faced fuel shortages amid panic buying. Photo: AAP

Electric cars represented 11.8 per cent of new car purchases in February, according to the Electric Vehicle Council and Federal Chamber of Automotive Industries, setting a record and rising from 5.9 per cent during the same month in 2025.

The Australian Finance Industry Association also revealed this week that low-emission car loans accelerated by almost 20 per cent during 2025, jumping to $7.37 billion and financing more than 129,800 vehicle purchases.

Hybrid and plug-in hybrid vehicles outnumbered their electric counterparts by more than 13,800 sales, but the popularity of electric cars grew the most, rising by nearly 30 per cent, according to the association’s EV and Hybrid Finance report.

The report found low-emission vehicles could take off even faster in 2026, with a survey of more than 1000 Australians showing 39 per cent planned to buy an electric or hybrid model for their next car compared with 46 per cent for petrol and diesel cars.

However, association chief executive Diane Tate warned that many could change their minds if the government put the brakes on a tax discount for electric cars, which is under review.

One in three of those surveyed said they would be less likely to buy an electric vehicle if the fringe benefits tax exemption was removed.

“One of the striking out-takes not just from our industry data but the consumer research is how sensitive consumers and businesses are to policy signals,” Tate said.

“It’s proven through the data that the FBT exemption for EVs is not only important but we should be bringing back the exemption for plug-in hybrids as well.”

EV drivers report significant fuel savings. Photo: AAP

Meanwhile, survey findings released on Tuesday by the Electric Vehicle Council and the University of Sydney’s Institute of Transport and Logistics Studies found more than 70 per cent of EV owners reported fuel savings of over 60 per cent compared with their previous petrol car.

Seventy-three per cent of the more than 1800 EV owners surveyed also said they spent less than $300 a year on maintenance.

EV Council CEO Julie Delvecchio said the fuel savings “matter more right now than ever before”.

“With petrol above $2 a litre, driving on electricity is around four times cheaper per kilometre – even when charging at peak electricity prices, and cheaper again off-peak,” she said.

Delvecchio said anxiety about issues such as vehicle range, charging access and upfront costs dropped sharply after people had bought an EV.

“If you’ve been thinking about an EV, now is a good time to seriously consider it.

“Not only does it give you fuel security, but also really significant savings – and even more so as petrol prices go up.”

Delvecchio added that the findings showed the federal government should retain the electric car discount, “because it’s helping Australians cut the cost of living and improve the country’s resilience from overseas conflicts”.

Although electric vehicles usually cost more to buy than petrol or diesel vehicles, modelling released by the ABC appears to support the survey findings about fuel savings – especially as prices rise.

A Nordic study published last month also found that, on average, a 1 per cent increase in petrol prices in Denmark, Finland, Norway and Sweden saw EV sales rise by 0.85 per cent.

“At that rate, if petrol prices went up 20 per cent, EV uptake might surge an additional 17 per cent on top of an already increasing number of sales,” the ABC report noted.

–with AAP