Australian heavy fleets could save AUD $4.5m on electric

JET Charge says a 100-vehicle heavy fleet in Australia could save AUD $4.5 million a year by switching from diesel to electric charging, based on its modelling of fuel and charging costs for heavy commercial vehicles.

According to the company, a fleet of that size currently spends about AUD $5.8 million a year on diesel at AUD $1.91 a litre. The electric equivalent would cost about AUD $1.3 million a year through depot charging. Those savings come before any reduction in maintenance costs or other operating benefits tied to electrification.

The figures come as rising fuel costs put pressure on freight, logistics and delivery operators, many of which already work on narrow margins. JET Charge says businesses that once expected to spread electrification over five years are now trying to complete those plans within 18 months.

Tim Washington, Co-Founder and Chief Executive Officer of JET Charge, said the economics had shifted sharply. "At current diesel prices, the fuel cost savings of switching a commercial fleet to electric are not marginal. They are transformational."

He said charging infrastructure had become the central practical question for operators weighing the change. "The question for Australian fleet operators is no longer if they should electrify. It's whether their charging infrastructure will be ready when the vehicles arrive."

Cost pressure

JET Charge linked the faster timetable to sustained volatility in oil markets and the broader risk of relying on imported fuel. According to its analysis, diesel dependence in freight is feeding through to the price of goods, adding another pressure point for retailers and households.

Australia's freight system relies on rigid trucks, semi-trailers and delivery vans to move supermarket stock, consumer goods and building materials across the country. If operators cannot absorb higher diesel prices, those costs are likely to pass through supply chains into final prices.

Washington argued the effect is already visible. "Sustained diesel dependency in freight is one of the less visible but most direct contributors to the rising price of goods. And it's already happening."

He added that the issue goes beyond environmental targets. "But this is not sustainable long term. Fleet electrification is now a risk mitigation strategy for supply chain cost issues, and has real consumer implications."

Infrastructure bottleneck

JET Charge says the faster pace of vehicle procurement is colliding with long lead times for charging depots. It estimates depot charging infrastructure is running on lead times of 18 to 24 months, creating a bottleneck for operators that have yet to commit.

Public charging is often treated as the main barrier to electric vehicle adoption, the company said, but only a minority of charging demand is expected to come from public networks. Most charging for commercial fleets would need to happen on private sites such as depots, factories, council lots and transport hubs, many of which need electrical upgrades before they can support large vehicle fleets.

That work can involve grid connections, site planning approvals, electricians, charging hardware and software to manage energy use. As a result, vehicle orders alone do not determine the speed of fleet electrification.

Washington said many operators are no longer early movers testing a new technology. "The operators calling us today are not the early adopters. They are mainstream companies that have run the numbers and realised the window to act at a sensible cost is closing. Infrastructure lead times mean that the decision to electrify needs to be made well before the vehicles arrive."

Retail examples

JET Charge pointed to existing commercial projects with retailers and logistics groups including IKEA, Woolworths, Commonwealth Bank, IAG and Team Global Express. It also said it supported NewVolt on what it described as Australia's first truck charging network for freight corridors.

One of its largest projects has been with IKEA Australia, where it designed and built a national charging network across seven sites. The work involved AUD $4.5 million of investment and the installation of 59 chargers supporting more than 100 electric delivery vehicles, according to JET Charge.

JET Charge says IKEA's network helped the retailer increase zero-emission deliveries from 5% to 83% within three years. The rollout was aimed at removing the cost barrier for delivery partners that would otherwise have struggled to fund depot charging themselves.

Washington said that model could be repeated more widely. "This is the playbook for every major Australian retailer and logistics operator. If you move the infrastructure barrier, the transition follows. By building intelligent, fit-for-purpose infrastructure, delivery partners have the reliability they need on the road, and IKEA has the visibility to lead real emissions reductions across its supply chains."

The company's methodology assumes a heavy commercial vehicle such as a 12-metre bus or rigid truck uses about 40 to 50 litres of diesel per 100 kilometres, while an electric equivalent uses about 1.3 kilowatt hours per kilometre. It also assumes commercial electricity rates for large depot-based fleets of AUD $0.13 to AUD $0.18 per kilowatt hour.