Driving prices: How to make your fuel dollars go further

Last updated on April 21st, 2026

Holding your breath every time you head to the petrol station? Wondering whether to fill up or just put in $50 and hope the price takes a dive by the time you need to top up?

Between the pandemic and the ongoing war in Ukraine, we have become used to prices going up at the pump over the past few years. But with the volatile situation in the Middle East changing almost daily, there are increasing concerns not just about the cost of fuel but of supplies drying up.

As the chief executive of the Australian Institute of Petroleum, Michael Roberts, pointed out, the nation is dependent on imported fuel. “Only about 4 percent of fuel we use in Australia is Australian crude refined in Australia,” he said.

The average petrol price ranged between $1.85 to $2.74 per litre in the Australian Competition and Consumer Commission’s last monitoring report. While the halving of the government’s fuel excise has brought prices down by more than 30 percent in the capital cities and most regional areas, diesel remains high – up to $3.39 per litre – with the effect of the excise cut largely offset by increases in the cost of international refined diesel.

While we can’t control the price at the bowser, we can make those litres stretch further with some simple steps. With some experts forecasting fuel rationing, particularly in the wake of a major fire at one of Australia’s two refineries, this has never been more important.

 

 

How to save on fuel

Make your vehicle work better for you with 10 easy steps to fuel efficiency:

• • Accelerate wisely. Gradually increase speed and drive at an even pace. For optimum efficiency, accelerate your car from 0 to 15 km/h in five seconds. This will dramatically decrease fuel consumption by 15 percent.
  • Don’t speed. The faster you drive, the more aerodynamic drag and the more fuel you burn. Most vehicles begin to lose efficiency at speeds above 100km/h. Driving your car at 120km/h uses about 20 percent more fuel than 100km/h.
  • Reduce idling. If you're stopping for more than 30 seconds (such as waiting at a drive-thru), turn off your engine until it's time to move again. This decreases fuel consumption by 10 percent or more.
  • Use the air conditioner sparingly. It is a gas guzzler. Unless the heat is unbearable, open your windows and enjoy the breeze instead.
  • Get the right tyre pressure. This can improve fuel economy by up to four percent. Check the owner’s manual or inside the front door for correct pressure.
  • Avoid heavy loads. Carrying around a lot of unnecessary weight in your mid-sized car can use up to an extra one percent fuel for every 25kg it carries.
  • Drive less. Combine errands to avoid making multiple short trips that use up more fuel. Carpool or use public transport where possible.
  • Brake gently. Taking your foot off the accelerator a few seconds before you need to stop, rather than braking suddenly, can save about 20 percent of fuel consumption.
  • Maintain your car. Regularly check the oil and tyre pressure and service the car regularly. This will help improve fuel efficiency and prevent more expensive repairs down the track.
  • Choose the right fuel. Generally speaking, premium petrol is only necessary for high-performance cars that specifically require it.

 

 

Explore driving alternatives

Of course, the best way to save money on fuel is to find an alternative mode of transport. This includes walking, cycling, taking public transport or carpooling, provided your home and/or workplace makes any of these realistic options. You want to cut down your fuel consumption, not add to your stress levels.

Even if you only choose an alternative way to get to and from work, or to take the kids to school, a few times a week, you’ll save a lot of money on fuel – and it will also be better for the environment.

Consider a hybrid vehicle

Hybrid vehicles use both an electric motor and a petrol engine, which means they're more fuel-efficient than traditional petrol or diesel cars.

While hybrid vehicles can be more expensive, they can save you money in the long run because you'll use less fuel.

There are hybrid car models to suit your budget and size preference. Brands include Toyota, Subaru, GWM and Lexus. Aside from their fuel efficiency, they emit fewer emissions than traditional petrol or diesel cars.

They also have regenerative braking, which means they convert some of the energy from braking into electricity to recharge the battery. This helps to improve fuel efficiency even further.

One of the main drawbacks is that they can be more expensive to purchase than traditional petrol or diesel cars. They can also be less powerful, which means they might not be suitable for everyone, such as people who do a lot of country driving.

Finally, hybrid cars still rely on petrol or diesel, so you still have to pay the price at the pump, and they're not entirely emissions-free.

 

 

What about going fully electric?

For an even more fuel-efficient and environmentally friendly option, consider going fully electric.

Electric cars are powered by electricity from batteries, which makes them much more efficient than petrol or diesel cars. They also have zero emissions, which is great for the environment. Although some argue that the power needed to recharge batteries still requires fossil fuels, greenhouse gas emissions can be eliminated if EVs are charged using renewable energy.

While EVs now account for almost 12 percent of all new car sales in Australia, many are still put off by the cost to buy one, as well as concerns about the infrastructure to support them. You want to know there is a charging station.

 

 

At the current fuel price, however, EVs are worth considering, and there are several incentives to do so, including state-based stamp duty exemptions, registration discounts and rebates.

EVs are also apparently cheaper to maintain, which means more savings. You just have to know how to choose the right brand and model.