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EV group wants petrol, diesel vehicle owners to be taxed twice

EV group wants petrol, diesel vehicle owners to be taxed twice

The Australian Electric Vehicle Association wants a universal road-user charge to be implemented, but still wants fuel to be subject to an excise.

The Australian Electric Vehicle Association is pushing for a universal road-user charge that would apply to every vehicle on the road, while arguing that fuel should continue to carry an excise. In practice, that combination means drivers of petrol and diesel cars would keep paying fuel excise at the pump and also face a separate charge for using the roads, an outcome critics describe as taxing the same motorist twice. The proposal has restarted a familiar debate about who should fund road maintenance as more electric cars join traffic.

The logic behind the idea is that fuel excise has long served as an indirect road-use fee, since the more you drive, the more fuel you burn. As electric vehicles avoid that charge altogether, the revenue pool that pays for highways and repairs shrinks. The association's answer is a flat, distance-based system covering all vehicles, but it stops short of scrapping fuel excise — a position that leaves combustion owners contributing through two channels while electric owners pay through one.

For Saudi buyers, the story is mainly a signal rather than an immediate change. The Kingdom does not operate a road-user charge of this kind, fuel remains inexpensive by international standards, and there is no annual road tax aimed specifically at electric cars. That gap is one reason electric vehicles look attractive on running costs here, even as the charging network continues to expand under Vision 2030.

Shoppers weighing an electric model against a petrol or hybrid alternative should still look past the showroom figure. Consider electricity costs at home versus public chargers, insurance, servicing, battery warranty terms and expected resale value, then compare that total against a comparable petrol SUV or sedan. A road-user charge elsewhere would not automatically be copied in Saudi Arabia, but it shows how quickly the cost equation around electric cars can shift when governments revisit how roads are funded.

The practical takeaway is to treat policy as one variable among several. Buy the powertrain that suits your daily driving, your access to charging and your budget today, and keep an eye on regulatory news, because running-cost advantages are never permanent.

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