Australian Fuel Consumption Trends

Australia has experienced significant shifts in fuel consumption patterns over the past 15 years, driven by factors such as the rise of online shopping, changing vehicle preferences, and the increasing adoption of hybrid and electric vehicles. Data from the Department of Climate Change, Energy, the Environment and Water indicates a notable increase in diesel sales, alongside a decline in E10 unleaded and LPG consumption.

Diesel Sales Surge Driven by Commercial and Utility Vehicles

Diesel fuel sales increased by 48% between 2011 and 2025, despite diesel vehicles making up only 30% of total registrations.

This growth is primarily attributed to a rise in diesel-fuelled light commercial vans and trucks, largely used for home deliveries stemming from the surge in online shopping. The number of such vehicles on Australian roads increased by 12% in the last three years, with light commercial vehicle registrations rising from 793,000 in 2015 to 1.15 million in 2025.

The popularity of diesel utes and 4WDs, exemplified by the Ford Ranger and Toyota Hilux being top-selling vehicles in 2025, also contributed to this trend. Additionally, road freight, agriculture, and mining sectors were identified by the federal Department of Infrastructure and Transport as key drivers for higher diesel demand, given that heavy freight vehicles, predominantly diesel, cover greater distances.

E10 Unleaded Fuel Sees Steep Decline

Sales of E10 unleaded fuel, which contains 10% ethanol, plummeted by 44% over the past 15 years, dropping from three billion litres in 2011 to 1.7 billion litres in 2025.

Despite being, on average, 2.1 cents per litre cheaper than unleaded 91 according to a NSW Government survey, E10 has not gained widespread acceptance among motorists. Industry representatives cite a lack of perceived benefit from the minimal price difference and limited availability in some regional areas as factors contributing to its unpopularity.

LPG Sales Collapse Amid Fleet Retirement and Infrastructure Shift

LPG sales experienced a drastic decline of 87%, falling from 1.9 billion litres in 2011 to just 242 million litres in 2025.

This decrease is linked to the retirement of older taxi fleets that commonly used LPG. Furthermore, high environmental regulation costs and low profit margins for service stations selling LPG have led to a reduction in its availability. Some retailers find it more economical to replace LPG tanks with alternative infrastructure like EV chargers or additional parking.

Hybrid and Electric Vehicles Drive Down Overall Petrol Consumption

The increasing adoption of hybrid and electric vehicles is a significant factor in the overall decline of petrol sales.

From 2024 to 2025, hybrid vehicle registrations grew by 46% to 709,100. Electric vehicle registrations increased by 54.6% in 12 months, reaching 259,690 in 2025. These vehicles contribute to reduced fuel consumption due to their inherent efficiency.

Premium 98+RON Fuel Sales Defy Petrol Decline Trend

In contrast to other petrol types, sales of Premium 98+RON fuel rose by 67% over the past 15 years, with 3.5 billion litres sold in 2025, bucking the general petrol decline.

This growth may be influenced by hybrid vehicle owners, who, while consuming less fuel overall, may choose to purchase a higher-grade product. Some motorists also perceive Premium 98+RON as offering superior power, efficiency, and cleanliness for their vehicles, despite its higher price point compared to E10 and unleaded 91.