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Fuel & Energy· 9 min read · 1 July 2026

Most Fuel Efficient Cars in Australia 2025 (Cheapest to Run)

The most fuel efficient petrol, hybrid, and diesel cars available in Australia in 2025 — ranked by L/100km with real annual running cost estimates.

See how much a more efficient car saves you

Enter your current fuel economy and a target figure to calculate your exact annual saving.

Most Fuel Efficient Small Cars in Australia 2025

Small cars offer the best fuel efficiency in the petrol segment. The hybrid variants of popular models are now within $3,000–$5,000 of their petrol equivalents, making the payback period increasingly short for regular drivers.

ModelPowertrainL/100km (combined)Annual fuel cost*
Toyota Corolla HybridPetrol hybrid4.2$1,260
Toyota YarisPetrol5.3$1,590
Toyota Corolla petrolPetrol6.3$1,890
Mazda 3Petrol6.5$1,950
Honda CivicPetrol6.4$1,920
Hyundai i30Petrol7.1$2,130
Kia CeratoPetrol7.4$2,220
Volkswagen GolfPetrol6.5$1,950

*Annual fuel cost: 15,000 km/year at $2.00/L. Manufacturer WLTP figures — real-world typically 10–15% higher.

The Corolla Hybrid saves approximately $630/year in fuel over the petrol Corolla ($1,260 vs $1,890). At an $3,000–$4,000 price premium, payback is 4–6 years for a 15,000 km/year driver — faster for higher annual mileage.

Most Fuel Efficient Compact SUVs in Australia 2025

Compact SUVs are Australia's most popular vehicle segment. Hybrid variants now dominate the fuel efficiency rankings in this class.

ModelPowertrainL/100kmAnnual fuel cost*
Toyota Yaris Cross HybridPetrol hybrid4.5$1,350
Toyota C-HR HybridPetrol hybrid4.8$1,440
Honda HR-V e:HEVPetrol hybrid5.0$1,500
Toyota C-HR petrolPetrol7.5$2,250
Mazda CX-3Petrol6.0$1,800
Hyundai KonaPetrol7.0$2,100
Kia SeltosPetrol7.5$2,250
MG ZSPetrol8.1$2,430

The Yaris Cross Hybrid at 4.5 L/100km saves $900/year over the equivalent MG ZS petrol at 8.1 L/100km — that is $4,500 over 5 years in fuel alone.

Most Fuel Efficient Mid-Size SUVs in Australia 2025

The mid-size SUV class (RAV4, CX-5, Tucson, Sportage) is where hybrid technology has had the biggest impact on running costs. The Toyota RAV4 Hybrid is now the best-selling SUV in Australia — partly because fuel savings close the price gap within 3–5 years.

ModelPowertrainL/100kmAnnual fuel cost*
Toyota RAV4 HybridPetrol hybrid4.7$1,410
Hyundai Tucson HybridPetrol hybrid5.6$1,680
Kia Sportage HybridPetrol hybrid5.9$1,770
Mitsubishi Outlander PHEVPlug-in hybrid1.9 (PHEV)~$570†
Toyota RAV4 petrolPetrol8.5$2,550
Mazda CX-5 petrolPetrol7.4$2,220
Mazda CX-5 dieselDiesel5.5$1,815‡
Nissan X-TrailPetrol8.1$2,430
Honda CR-V e:HEVPetrol hybrid5.7$1,710

*15,000 km/year at $2.00/L. †PHEV figure assumes frequent home charging. ‡Diesel at $2.20/L.

The RAV4 Hybrid vs RAV4 petrol: $1,140/year saving in fuel ($1,410 vs $2,550). With a $5,000–$7,000 price premium, payback is under 5 years at average mileage and under 4 years for higher-km drivers.

Most Fuel Efficient Utes in Australia 2025

Dual-cab utes are Australia's best-selling vehicles, but fuel efficiency is not their strongest suit. The HiLux and Ranger dominate sales despite relatively high consumption figures. Diesel utes offer better economy than petrol equivalents at high annual kilometres.

ModelEngineL/100kmAnnual fuel cost*
Toyota HiLux diesel 2WD2.8L diesel8.0$2,640‡
Toyota HiLux diesel 4WD2.8L diesel9.2$3,036‡
Ford Ranger diesel 2WD2.0L diesel7.9$2,607‡
Ford Ranger diesel 4WD2.0L diesel9.0$2,970‡
Mitsubishi Triton diesel2.4L diesel8.5$2,805‡
Isuzu D-Max diesel3.0L diesel8.2$2,706‡
Mazda BT-50 diesel3.0L diesel8.2$2,706‡

‡Diesel at $2.20/L, 15,000 km/year.

There are no hybrid utes yet available in Australia (as of 2025). Ford has announced a Ranger hybrid; Toyota is testing a HiLux hybrid. These will materially change the ute running cost comparison when they arrive.

How Much Can You Save by Choosing a Fuel Efficient Car?

The savings compound over a typical ownership period of 5–7 years:

ComparisonAnnual saving5-year savingPayback on premium
Corolla Hybrid vs Corolla petrol$630$3,1505–6 years
RAV4 Hybrid vs RAV4 petrol$1,140$5,7004–5 years
Yaris Cross Hybrid vs Kia Seltos$900$4,5003–4 years
RAV4 Hybrid vs Nissan X-Trail$1,020$5,1004–5 years
CX-5 diesel vs CX-5 petrol$405$2,0254–5 years

These figures are fuel-only savings. Total cost of ownership comparisons (including depreciation, insurance, and servicing) often favour hybrids even more strongly because hybrids hold their resale value better and have lower servicing costs. Use the Hybrid vs Petrol Calculator for a full 5-year comparison.

Tips for Maximising Fuel Economy in Any Car

Regardless of which car you drive, your driving habits can affect real-world fuel economy by 15–30%:

  • Maintain correct tyre pressure: Underinflation adds 2–4% to fuel consumption. Check monthly.
  • Drive smoothly: Anticipate stops, accelerate gradually, and coast to traffic lights. Aggressive driving adds 15–25% to fuel use.
  • Use cruise control on highways: Maintains a steady speed more efficiently than manual throttle control.
  • Reduce speed on highways: Driving at 100 km/h instead of 120 km/h saves 15–20% fuel (drag increases with the square of speed).
  • Remove roof racks and boxes when not in use: Empty roof racks add 5–15% aerodynamic drag at highway speeds.
  • Service the engine regularly: A clean air filter and fresh engine oil reduce fuel consumption by 1–4%.

See our 7 tips to reduce commute fuel costs for more strategies.

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Frequently Asked Questions

What is the most fuel efficient car in Australia in 2025?

Among non-electric cars, the Toyota Corolla Hybrid leads the small car category at 4.2 L/100km combined. The Toyota Yaris Cross Hybrid achieves 4.5 L/100km in the compact SUV class. The Toyota RAV4 Hybrid is the most popular fuel-efficient mid-size SUV at 4.7–5.0 L/100km. For pure petrol cars, the Toyota Yaris is among the best at 5.3 L/100km.

Which hybrid car has the best fuel economy in Australia?

The Toyota Corolla Hybrid (4.2 L/100km) and Toyota Yaris Cross Hybrid (4.5 L/100km) lead the hybrid rankings for passenger and compact SUV categories. The Toyota RAV4 Hybrid (4.7 L/100km) is the best-selling fuel-efficient SUV. The Hyundai Tucson Hybrid achieves 5.6 L/100km. Plug-in hybrids (PHEVs) like the Mitsubishi Outlander PHEV can achieve under 2 L/100km in mixed city/highway driving when frequently charged.

What is considered good fuel economy in Australia?

In Australia: under 6 L/100km is excellent for a petrol car; 6–8 L/100km is good; 8–10 L/100km is average; over 10 L/100km is poor for a passenger car (though acceptable for large SUVs and utes). For SUVs: under 7 L/100km is excellent; 7–9 L/100km is good. Hybrids typically achieve 4.2–6.5 L/100km. EVs are rated in kWh/100km — most achieve 15–20 kWh/100km, equivalent to approximately 1.5–2.0 L/100km in energy cost terms.

How much do I save per year with a fuel efficient car?

The difference between a 6 L/100km car and a 10 L/100km car at 15,000 km/year with fuel at $2.00/L is: 6 × 150 × $2.00 = $1,800/year vs 10 × 150 × $2.00 = $3,000/year — a saving of $1,200/year, or $6,000 over 5 years. Upgrading from a 9 L/100km petrol SUV to a 4.7 L/100km hybrid SUV saves approximately $1,290/year. Use the Fuel Economy Savings Calculator for a personalised figure.

Is it worth buying a hybrid car in Australia in 2025?

For most Australian drivers who travel 12,000–20,000 km/year, a hybrid is worth it within 3–5 years. The Toyota RAV4 Hybrid costs approximately $5,000–$7,000 more than the equivalent petrol RAV4 but saves $1,200–$1,500/year in fuel. At 12,000 km/year the payback is 4–5 years; at 20,000 km/year it is 3–4 years. Hybrids also have lower servicing costs and better resale values than petrol equivalents.

Which diesel car has the best fuel economy in Australia?

The Mazda CX-5 diesel achieves approximately 5.5 L/100km, making it one of the most fuel efficient diesel SUVs. The Toyota HiLux diesel twin-cab achieves 8.0–9.5 L/100km. For pure diesel small cars, the Mazda 3 diesel (now discontinued) achieved 4.5 L/100km. Diesel typically suits high-km drivers (25,000+ km/year) or those who regularly tow — the fuel cost saving over petrol becomes meaningful at high annual mileage.

What is the cheapest car to run in Australia per km?

On a fuel-only basis, EVs are cheapest at 3–5 cents/km when charged at home (30c/kWh). Hybrids follow at 9–12 cents/km. Efficient petrol small cars (Corolla, Mazda 3) cost 11–13 cents/km. The total cost per km including all running costs (fuel, rego, insurance, servicing, depreciation): small petrol car 51–65c/km; hybrid SUV 65–80c/km; large 4WD 100–130c/km.

Are fuel efficiency ratings accurate in Australia?

Manufacturer fuel efficiency ratings in Australia are measured under WLTP (Worldwide Harmonised Light Vehicles Test Procedure) conditions, which are more realistic than the old NEDC cycle but still typically 10–20% better than real-world fuel economy. Real-world consumption depends on driving style, speed, air conditioning use, load, and tyre pressure. Websites like RACV and NRMA publish real-world fuel consumption surveys that are useful for comparison.

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