If you’ve driven past a petrol station recently, you’ve probably winced at the sign. As of March 2026, the average price of petrol is sitting above $2.45/L, reaching as high as $2.48/L in Sydney. That means the average Australian household is now dropping roughly $20,000 a year just to keep a car running!
For most city commuters making trips under 10-15km, leaving the car at home isn’t just a nice thing to do for the planet anymore—it’s a massive win for your wallet.
Swapping your car for an eBike on those short trips is the perfect hack right now while petrol prices are through the roof. Plus, you get to skip the headaches of insurance, registration, and mechanic bills.
TL:DR: With petrol prices soaring past $2.45/L in March 2026, the average Australian household is spending roughly $20,000 annually just to keep a car on the road. Swapping short urban commutes for an eBike can save over $15,000 a year while often proving faster door-to-door than driving through heavy city traffic. With eBike subscription, riders gain a cost-effective, sweat-free, and health-boosting alternative that bypasses the volatility of global fuel markets. For urban trips under 10km, an eBike outpaces cars and public transport, typically saving between 30% and 50% of their total travel time on these routes.
The real cost of driving in Australia right now
When we talk about the cost of driving, we usually just think about the sting at the pump. But the true cost of owning a car goes way beyond your weekly fill-up.
According to research from Monash University, keeping a car on the road costs around $20,000 a year. Here is a quick look at how that breaks down:
- Fuel: With prices around $2.45/L, a short 20km daily round-trip commute (in a car averaging 10L/100km) will cost you $24.50 a week. That’s $1,274 a year just in petrol.
- Insurance: Between $1,200 and $2,500 every single year.
- Registration: Another $700 to $900 annually.
- Maintenance: A painful $1,500 to $3,000 at the mechanic.
- The Hidden Extras: This doesn’t even count the massive hit of vehicle depreciation or the daily annoyance of paying for parking
Why petrol prices are rising (and might stay that way)
We’d love to say this is just a temporary blip, but the reality is a bit more complicated.
The reasons behind these price hikes are tied to global oil markets and the ongoing conflict in the Middle East. The tricky part is that Australia is incredibly vulnerable when it comes to fuel, currently holding only a 36-day supply of petrol.
Because we rely so heavily on imports, our prices are always going to jump when global supply gets disrupted. So, rather than waiting for prices to drop, it might be time to look for a better way to get around.
Why public transport isn’t always the answer
When petrol prices spike, the first thing people say is, “Just take the train or bus!”
And look, public transport can be really cost effective, especially in Queensland at a flat 50c per trip. But it definitely has its limits. As more people ditch their cars to save money, public transport networks are getting more and more congested. Add in fixed schedules, crowded carriages, and having zero control over your route, and it’s easy to see why we start looking for better options.
Plus, buses and trains don’t go everywhere. If you live in the suburbs of Brisbane, Sydney, or Melbourne, you often still have to hike a fair distance just to reach a station. Even rideshare apps are feeling the pinch, with DiDi adding a $0.05/km fuel surcharge as of March 2026.
It makes total sense that 75% of people surveyed want to cycle more. An eBike bridges the gap perfectly: you get the convenience of a car, the low cost of public transport, and the health benefits of cycling—without arriving at work drenched in sweat.
Follow Kelsey as she compares catching the tram vs riding an eBike in Melbourne (spoiler alert, she’d choose eBike every single time.
Why an eBike is actually faster than driving
Think an eBike will slow you down? Think again! Urban transport data shows that over 50% of city trips are under 5km.
For these shorter trips, an eBike is often way faster door-to-door than driving, and it easily beats public transport. Since the pedal assist keeps you cruising at around 25km/h, you get to completely skip the traffic jams, wave goodbye to the parking hunt, and never have to wait for a delayed bus again.
Plus, your commute becomes 100% predictable. No more checking the traffic report or stressing over train delays—your ride takes the exact same amount of time, every single day.
Here is how the commute time stacks up:
Source: Average urban commute times and distances based on Monash University research and average eBike assisted speeds of 25km/h.
Discover our best eBike commuting tips or explore scenic eBike routes in your city.
eBike vs Public Transport: the full cost comparison
Let’s put the household budget under the microscope. Here is exactly what it costs annually to run a car versus taking public transport or riding a Lug+Carrie eBike.
For someone spending $20,000 a year on their car, switching to a Lug+Carrie eBike subscription could save over $15,000 annually. Whether you’re commuting in Melbourne, Sydney, or Brisbane, those are massive savings. When you factor in the health benefits and the time you buy back by skipping the wait at the bus stop, an eBike pays for itself in entirely different ways.
Learn more about whether you should subscribe or buy an eBike, or explore our subscribe-to-own eBikes program.
Table source: Annual car running costs based on Monash University research and a $2.45/L fuel average over a 20km daily commute. Public transport costs reflect standard state transit fares including the QLD 50c initiative. eBike costs reflect a standard Lug+Carrie weekly subscription.
Beyond cost: the hidden benefits of commuting by eBike
The financial savings are awesome, but the everyday perks of riding are just as life-changing:
- Health and fitness: You’re still pedalling, just with a helpful boost. Studies show that eBike riders get cardiovascular health benefits that are super similar to regular cyclists!
- Mental health: Say goodbye to road rage and squished train commutes. You actually arrive at the office feeling energised instead of stressed out.
- Environmental impact: Transport is Australia’s third-largest source of greenhouse emissions (about 22% of our total emissions). Riding an eBike means zero direct carbon emissions and zero fuel cost.
- Total Flexibility: Cruise in the bike lane, skip the traffic, and park literally anywhere for free.
Discover more benefits of switching to an eBike.
Choosing the best eBikes for commuters
If you’re on the hunt for a commuter eBike in Australia, we’ve put together the safest and most reliable setups so you can make every commute a breeze. Plus, all of our subscription eBikes come with your choice of accessories, rider rescue, comprehensive insurance, and regular servicing already built-in.
Here are a few of our most popular eBike setups:
- The School Bus (Tern GSD or Quick Haul Long): The kids, the school bags, and rock star parking.
- The Professional (The Tern Quick Haul or HSD): Soak up the freedom and beat the bus to work.
- The Carrie (Riese & Muller Carrie): From work to the weekend, this compact and versatile front loader eBike is functional and oh-so-fun.
- The Cruiser (Riese & Muller Culture): Forget the sweaty backpack, the Cruiser can carry all the things for work+life.
Get started by customising a subscription eBike online.
How to get started: subscribe-to-own, buy new or refurbished
Ready to break up with the petrol pump? While our flexible subscription is the easiest way to get started, we give you total freedom to choose how you ride:
- Subscribe-to-Own: Starting from just $49/week, our eBike subscription includes all servicing, maintenance, and the option to swap models, with zero upfront cost. If you fall in love, your payment can act as credits toward buying your eBike (or another that takes your fancy) later.
- Buy New: Skip the subscription and take home a brand new, Bosch-powered machine straight away.
- Buy Refurbished: Score a smart deal on a meticulously maintained, certified Lug+Carrie Refurbished eBike.
With petrol sitting above $2.45/L, there’s never been a better time to make the switch.
Book a free test ride today.
FAQ: eBikes, fuel prices and commuting in Australia
Q: Why are petrol prices so high in Australia right now?
A: Petrol prices have surged past $2.40/L recently due to global oil supply disruptions. Because Australia only holds about a 36-day reserve of fuel, we are highly vulnerable to international supply shocks.
Q: How much can I save by switching from a car to an eBike?
A: The average Australian household spends ~$20,000/year running a car. An eBike subscription with Lug+Carrie starts at $49/week ($2,548/year) including your servicing, which can mean a potential saving of $10,000 to $15,000+ annually.
Q: Is an eBike faster than driving for short commutes?
A: For trips under 10km in the city, absolutely. When you factor in sitting in traffic, hunting for parking, and walking to the office, an eBike averaging 25km/h is often much faster door-to-door.
Q: Are Lug+Carrie eBikes safe and legal in Australia?
A: Yes! eBikes with a motor up to 250W and a maximum assisted speed of 25km/h are officially classified as bicycles, meaning they don’t require registration or a driver’s licence. Learn more about electric bike laws in Australia.
Q: Will petrol prices come back down in Australia?
A: While prices might dip occasionally, Australia’s reliance on imported fuel means long-term petrol costs probably won’t return to those pre-crisis levels anytime soon. Building active transport habits is the best way to protect yourself from future price shocks!
Q: What’s the cheapest way to commute in Australia?
A: An eBike is one of the cheapest ways to get around, costing as little as $0.01 to $0.02 per kilometre in electricity. Even with a subscription, it is way cheaper than car ownership, super comparable to public transport, and gives you infinitely more freedom.
