5 things HR should know about fuel prices and employee benefits

1. What rising fuel costs mean for your workforce

When fuel prices jump, employees feel it immediately. It eats into disposable income, can add stress to weekly budgeting, and show up in conversations about pay and benefits. The HR teams who understand that pressure can respond with practical support, before it can become a retention issue.

2. The petrol-to-electric gap is bigger than most people realise

On current pricing, $1 of petrol takes the average car about 7 kms. $1 of electricity can take the average EV around 38 kms.¹ For employees with a long commute or a daily school run, that's a meaningful difference.

3. EV demand is rising fast

EVs made up 13.1% of new car sales in Australia in 2025, up from 9.6% the year before². Your employees may already be thinking about the switch. The question is whether your benefits help them make it.

4. An EV novated lease can help employees get behind the wheel for less

The Australian Government's Electric Car Discount includes FBT exemptions on eligible battery electric vehicles through novated leasing, potentially saving employees thousands. For those weighing up an EV, it's often the most cost-effective way in. And it’s worth looking at now for the most options – changes are coming next year to eligible vehicles.

5. For employees already in a novated lease, now’s the time to check their fuel budget

Fuel prices can shift quickly, and an out-of-date fuel budget means deductions may not keep pace with actual costs. A quick review now can help keep employees on track.

When bills go up, financial wellbeing benefits need to deliver. Now's a good time to make sure your program is up to scratch.

Book a complimentary review of your benefits program

_{1. Source: elitre.com.au/dollar, 27 May 2026}

_{2. Source: Electric Vehicle Council, 08 January 2026}