EV Charging: What do fuel retailers need to know?

As electric vehicles gain momentum in Australia and New Zealand, how can fuel retailers adapt, and what support is available to help them invest?

The fuel retail business is on the cusp of perhaps its biggest change in more than a century. Australia has set sights on becoming a net zero carbon economy by 2050 [1] with a near-future focus on electrifying transport – a sector which contributes around a fifth its greenhouse gas emissions [2, 3].

Electricity will become an increasingly important part of the fuel mix over the coming years, which offers some new business opportunities for retailers. Here’s why.

How big is the EV market in Australia and New Zealand?

Although China, Europe and North America are the world’s fastest-evolving EV markets, policies in Australia are favouring electrification and demand is growing.

The Electric Vehicle Council (EVC) claims almost one in ten (9.6%) new cars were either plug-in hybrid (PHEV) or battery-electric (BEV) last year and the total fleet is expected to reach 300,000 units during 2025 [4, 5]. Five states are aiming to phase out non-EVs by 2035-36 [6, 7, 8, 9, 10] while the federal government introduced annual CO2 targets for manufacturers from 2025 – EVs can help meet those goals [11].

Meanwhile, economies of scale are improving for EVs – especially for batteries, which are now 84% cheaper (per kilowatt-hour of capacity) than a decade ago [12]. There were 122 BEV and PHEV models sold in Australia during 2024, according to the EVC, which is a 50% year-on-year increase [5] – ongoing production efficiencies will offer a wider choice of lower-cost, longer range vehicles over the coming years.

This will influence the wider vehicle stock. The EVC has forecast 2.5 million EVs on Australia’s roads by 2030 – or around 11% of the total stock – if governments can achieve on a 50-60% share of new registrations by that date [13, 14].

How will EV charging affect fuel retailers?

Electric vehicles offer a much wider variety of ‘refuelling’ opportunities than their petrol or diesel counterparts. Destinations, workplaces and homes – a third of which have solar PV in Australia [15] – will increasingly become places where drivers can plug in. Fuel retailers can have an important role building that network, supporting long-distance travel and drivers who can’t charge at home.

This isn’t just about selling electrons. Early movers can benefit from a profitable new revenue stream, with longer dwell times that can support on-site retail and food outlets. That’s a customer base which could otherwise be lost to other sectors (such as restaurants, shopping malls and hotels) or rival fuel retailers.

With no change in business model, Boston Consulting Group predicts up to 80% of fuel retail sites could become unprofitable by 2035 – or 60%, even in markets where traditional fuels still dominate [16].

How are state and federal governments supporting EV charging?

Building a nationwide charging network is one of six outcomes listed in the Australian Government’s National Electric Vehicle Strategy. Federal and state initiatives have supported installations at homes, workplaces, destinations, and alongside major route, which has helped that network develop.

Since January 2024, all government backed chargers have also had to meet strict national guidelines. These include 98% uptime, contactless card payments, clear pricing, live availability data, and measures ensuring units can be used by disabled drivers [17].

Konect recognises that funding schemes, and operating standards, change regularly. Our team monitors all available support to help customers access initiatives suited to their business.

How is Konect simplifying EV charging for fuel retailers?

As a subsidiary of Gilbarco Veeder-Root, Konect is built on more than a century of experience in the fuel retail environment. Our turnkey ecosystem empowers businesses to deploy a reliable, profitable and customer-friendly charging business, comprising:

• Konect Consulting: We’ll help you select the right locations, financing and equipment, including energy management and on-site battery storage – critical for strategically important remote locations where the grid supply is often limited.
• Konect Ecosystem: Konect provides a suite of our own hardware and software solutions designed for easier integration and a familiar interface (including Invenco terminals) reducing complexity and training while meeting federal standards.
• Konect Support: Our team will operate the unit for you, including a white label charging app for customers, predictive diagnostics and repairs, and a nationwide team of technicians to maximise uptime, profit and loyalty.

Interested in learning more? Reach out today

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References:

[1] https://www.dcceew.gov.au/climate-change/emissions-reduction/net-zero
[2] https://www.infrastructure.gov.au/infrastructure-transport-vehicles/towards-net-zero-transport-and-infrastructure
[3] https://www.bitre.gov.au/publications/2023/australian-infrastructure-and-transport-statistics-yearbook-2023/transport-energy-environment#dl-data
[4] https://electricvehiclecouncil.com.au/uncategorized/2024-sets-new-record-for-ev-sales-in-australia/
[5] https://electricvehiclecouncil.com.au/wp-content/uploads/2024/12/1734312344781.pdf
[6] https://www.climatechoices.act.gov.au/policy-programs/acts-zero-emissions-vehicles-strategy
[7] https://www.energy.nsw.gov.au/sites/default/files/2022-09/nsw-electric-vehicle-strategy-210225.pdf
[8] https://www.qld.gov.au/transport/projects/electricvehicles/zero-emission-strategy
[9] https://www.energymining.sa.gov.au/home/news/archive/articles/2021/sa_signs_global_cop26_declaration_for_100_per_cent_zero_emission_vehicles
[10] https://www.energy.vic.gov.au/renewable-energy/zero-emission-vehicles
[11] https://www.infrastructure.gov.au/infrastructure-transport-vehicles/vehicles/new-vehicle-efficiency-standard/australias-new-vehicle-efficiency-standard-frequently-asked-questions
[12] https://about.bnef.com/blog/lithium-ion-battery-pack-prices-see-largest-drop-since-2017-falling-to-115-per-kilowatt-hour-bloombergnef/
[13] https://electricvehiclecouncil.com.au/wp-content/uploads/2024/03/EVC-Australian-EV-Industry-Recap-2023.pdf
[14] https://www.bitre.gov.au/sites/default/files/documents/bitre-road-vehicles-australia--january2024.pdf
[15] https://www.energy.gov.au/news-media/news/australia-hits-rooftop-solar-milestone
[16] https://www.bcg.com/publications/2019/service-stations-future
[17] https://www.dcceew.gov.au/sites/default/files/documents/minimum-operating-standards-electric-vehicles-charging-infrastructure.pdf