The Real Cost of Towing in Australia
Australia has one of the highest rates of caravan and camper trailer ownership in the world, with over 600,000 registered caravans on Australian roads. For the millions of Australians who tow on holidays, weekends, or for work, fuel is consistently the largest variable cost of the trip — and towing dramatically increases it.
The fuel penalty from towing a caravan is not a fixed number. It depends on the weight of the trailer, its aerodynamic profile, your towing speed, and the mechanical efficiency of your tow vehicle. Understanding and calculating this penalty before you leave is the difference between a holiday that stays on budget and one that blows out at the servo.
Why Towing Increases Fuel Consumption
Aerodynamic Drag
The dominant factor in towing fuel penalty at highway speeds is aerodynamic drag. A caravan presents a large, flat frontal area that creates significantly more air resistance than the tow vehicle alone. Aerodynamic drag increases with the square of speed — which means driving at 110 km/h instead of 90 km/h does not just increase drag linearly, it multiplies it. Many experienced caravanners report that reducing their highway speed from 110 to 95–100 km/h saves 2–4 L/100km in towing fuel consumption.
Rolling Resistance
Beyond aerodynamics, the trailer's wheels and tyres add rolling resistance. A twin-axle caravan with four additional tyres means four additional points of friction on the road surface. Keeping trailer tyre pressures at the manufacturer's recommended level (not just inflated to the car's door placard) reduces rolling resistance and can save 1–2% of fuel. Trailer bearing condition also matters — a poorly maintained trailer with dry wheel bearings can create surprising drag.
Increased Vehicle Weight
Towing also increases the effective weight the engine must move, particularly during acceleration and on hills. For flat-terrain cruising on the highway, the aerodynamic penalty dominates. For hilly routes — common in the Great Dividing Range and across much of regional Australia — the weight penalty becomes significant as the vehicle must work harder on every uphill stretch.
Fuel Consumption by Trailer Type
The following figures are approximate towing fuel penalties based on real-world testing and owner data. Your actual results will vary based on vehicle type, towing speed, and terrain.
| Trailer Type | Approximate Weight | Typical Fuel Penalty |
|---|---|---|
| Light box / utility trailer | Under 500 kg | 5–12% |
| Boat on trailer | 500–1,200 kg | 12–18% |
| Camper trailer | 750–1,500 kg | 15–22% |
| Pop-top or van caravan | 1,500–2,200 kg | 20–30% |
| Large full-height caravan | Over 2,200 kg | 28–40%+ |
Tips to Reduce Towing Fuel Costs
- Slow down. This is the single most impactful change. Reducing speed from 110 to 90–95 km/h can reduce your towing fuel use by 15–25%.
- Check tyre pressures on both vehicle and trailer. Under-inflated tyres significantly increase rolling resistance and heat buildup.
- Use cruise control on flat roads. Eliminates the small speed variations that add fuel consumption over long distances.
- Reduce caravan weight. Every 100 kg of unnecessary gear adds fuel cost. Leave non-essentials at home.
- Fit a weight distribution hitch. Better load distribution improves aerodynamics and stability, with a modest fuel benefit.
- Buy fuel strategically. In Australia, fuel prices vary significantly by location. Regional servo prices are often higher. Fill up in major towns before remote stretches, and use apps like MotorMouth or GasBuddy to find the cheapest nearby price.
- Service your vehicle before a long tow. A clean air filter and fresh engine oil improve efficiency. Have the tow ball weight and suspension checked — overloaded rear suspension can force the engine to work harder.
Diesel vs Petrol for Towing
For long-distance caravan towing in Australia, diesel is generally the preferred choice for three reasons. First, diesel engines produce their peak torque at lower RPM, which suits the sustained medium-speed load of highway towing. Second, diesel fuel contains more energy per litre than petrol (approximately 38 MJ/L vs 34 MJ/L), so a diesel vehicle inherently travels further per litre. Third, diesel engines in modern 4WDs and utes are tuned for exactly the high-torque, sustained-load scenarios that towing demands.
That said, petrol engines are not impractical for towing. Many families successfully tow caravans up to 2,000 kg with petrol V6 or V8 engines. The fuel consumption penalty is higher in absolute litres, but petrol vehicles often have lower purchase prices and service costs.
Planning Your Caravan Trip Fuel Budget
For a realistic caravan trip fuel budget, use this calculator with three inputs: your actual towing fuel consumption (not the manufacturer's rated figure), the average fuel price along your route, and your planned trip distance. Add a 10–15% buffer for unexpected detours, hilly terrain, or headwinds. For remote Australian routes where fuel prices can reach $2.50+/litre, accurate pre-trip planning can mean the difference between a comfortable budget and a financial surprise.
For more fuel planning tools, try our Trip Fuel Cost Calculator for general road trip planning, or the Fuel Budget Planner to set a weekly or monthly fuel budget across multiple vehicle uses.