What does good fuel economy look like?

Finding the best fuel economy figures in the new car market is an often-complicated process further compounded by the discrepancies between lab-tested and real-world fuel consumption data.

To offer some buyer guidance, the Australian Automotive Association (AAA) – Australia’s peak motoring body – has published the latest results of its government-funded fuel efficiency program that will test 200 vehicles in various real-world settings across four years.

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The fifth round of AAA’s Real-World Testing Program — which tested 12 vehicles across nine car brands — revealed that seven cars exceeded their claimed fuel consumption figures by at least 10 per cent.

Of the 12 vehicles measured, the 2023 Chery Omoda 5 and 2023 GWM Haval Jolion Hybrid SUV ranked the worst, consuming 32 per cent more fuel (at 9.1 litres per 100 kilometres and 6.6L/100km, respectively) than their advertised lab-tested fuel efficiency ratings of 6.9L/100km and 5.0L/100km.

However, car makers alongside the Federal Chamber of Automotive Industries (FCAI) – the national motoring organisation for car makers in Australia – have expressed reservations about AAA’s real-world testing, given that fuel consumption can fluctuate due to external factors.

“Right now, the FCAI believes that the current government-funded real-world testing program presents too many variables and can have the risk of confusing consumers rather than providing clarity,” Tony Weber, the Chief Executive of the FCAI, said in a media statement.

“The fuel consumption figures published in our brochures provide a general guide of the expected fuel economy,” a Honda spokesperson told Drive.

“These figures are indicative and are dependent on several factors including, driving conditions (particularly temperature and terrain), load weight, time spent with the engine idling, and an individual’s driving habits,” they explained.

At Drive, we test more than 200 cars annually across different vehicle classes and varying driving circumstances. With this in mind, fuel consumption is always one of the important talking points when assessing and rating a new car.

Coupled with the cost-of-living crisis and incoming emission standards, fuel economy is at the forefront of everyone’s mind as Australia looks to emphasise lower-emission cars in the next few years.

To lend a helping hand in navigating the complexity of fuel consumption, Drive journalists shared their advice on what good fuel economy looks like across popular vehicle classes. 

Disclaimer: The numbers in this article should serve as a general guideline and are not definitive. All Drive journalists stated real-world fuel consumption figures are skewed by a driver’s driving habits, the weight of passengers, towing, and other external factors.

What is my fuel consumption?

Depending on what car you drive, modern cars can record a driver’s fuel consumption through a trip computer typically found in the vehicle’s infotainment or driver’s display menus.

However, if your car is older, you may have to calculate your fuel economy yourself. If so, you will need a range of numbers listed below:

• The distance travelled: This can be recorded by noting the odometer reading before you refuel. At the second refuel, check the odometer reading again and note the difference between the first and second readings.
• Consumed fuel litres: At the second refuel, note how many litres of petrol you’ve put into the vehicle to reach a full tank from the first refuel.

Once these figures have been identified, the general formula is: Fuel Consumption (L/100km) = Litres used / distance travelled x 100

For example, if a car has consumed 60L of fuel over 500km, then the fuel consumption would equate to 12.0L/100km (60 / 500 = 0.12, 0.12 x 100 = 12).

What is the average fuel consumption of a car in Australia?

According to a February 2024 report by the Climate Council, the average new passenger car (sedans and hatchbacks) in Australia consumes 6.9L/100km on average. 

For context, Australia’s average fuel consumption for passenger vehicles is among the highest in the world, outranking bigger global markets like the United States (4.2L/100km), the United Kingdom (3.6L/100km) and Europe (3.5L/100km), as per the Climate Council.

Meanwhile, the Australian average for light commercial vehicles (eg utes and vans) of 9.9L/100km is significantly greater than other nations like the UK (5.9L/100km), China (5.6L/100km) and the US (6.1L/100km).

How is fuel consumption measured?

It’s worth noting that fuel consumption figures – both lab-tested and real-world – on all cars sold in Australia are measured across two different test cycles.

As the name suggests, ‘urban’ is where vehicle’s fuel consumption is tested in urban conditions – like inner-city and suburban roads – where the car is travelling at lower speed limits and where the engine is subjected to more idling due to the stop/start traffic conditions.

This urban testing cycle generally records the highest fuel efficiency figures.

‘Extra-urban’ is when the car is tested on roads with constant speeds – such as freeways or country roads – for an extended time. In extra-urban testing conditions, the vehicle will typically record a lower fuel consumption.

The ‘combined’ fuel efficiency ratings typically listed on all cars sold in Australia are an average of the two types of testing results.

How much fuel consumption per kilometre is good?

For context, the Australian Taxation Office (ATO) defines a fuel-efficient car as a vehicle “that does not exceed 7 litres per 100 kilometres as a combined rating”.

At Drive, fuel efficiency ratings between 7–10.0L/100km are generally seen as acceptable, but this isn’t definitive as some vehicles could exceed this fuel consumption range depending on whether a driver uses the car for different situations like off-roading, urban/freeway driving, and towing etc.

A full list of the most popular vehicle classes and Drive’s recommended fuel consumption range for each type is listed down below.

Plug-in hybrid medium SUV: 0–5L/100km

Since plug-in hybrids (PHEV) can cover greater distances on electric-only power, for fully charged PHEV medium SUVs, Drive journalists advised anywhere from 0–5.0L/100km is the sweet spot for fuel consumption of this vehicle class.

Plug-in hybrids typically rely more on their bigger electric battery – in comparison to traditional hybrids – for power.

As such, the ideal fuel consumption can vary depending on the battery’s state of charge. A lower battery capacity will mean the petrol engine will be doing most of the work, inevitably increasing the fuel consumption figure.

Additionally, PHEVs are heavier than their traditional hybrid counterparts, and the increased weight could also influence the car’s ability to consume more petrol.

For reference, Tom Fraser, Drive journalist, previously reviewed one of the most popular PHEV medium SUVs in the market, the 2024 Mitsubishi Outlander.

During the testing period, the Mitsubishi Outlander – in the Exceed Tourer variant – achieved as low as 0.6L/100km of fuel consumption in electric-only mode across 70km. Once depleted, the PHEV SUV’s petrol engine averaged 5–6.0L/100km in city and urban streets.

Hybrid sedan: 4–5L/100km

New car buyers in the market for a hybrid sedan could consider models that have an ideal fuel efficiency range between 4–5.0L/100km in urban and extra-urban driving conditions.

Hybrid cars have started to gain traction among new car buyers largely due to their efficient powertrains, which combine both petrol and electric power and thus use less fuel to function.

Japanese auto giant Toyota has previously dominated the hybrid space in the global market, with its two best-selling passenger cars, the Camry and Corolla, consistently featuring in the top three sales spots of their respective classes.

In terms of real-world driving, Kez Casey, Drive’s Production Editor, found that the 2025 Toyota Camry Hybrid sedan consumed an average of 4.5L/100km when driving the mid-sized hybrid sedan through a mix of steady highway driving and stop-start commuting.

Petrol hatchback: 5–9L/100km

New car buyers looking at a petrol-powered hatchback should look for a vehicle with fuel consumption between 5–7.0L/100km for freeway driving and 7–9.0L/100km for inner-city and suburban streets.

In a real-world context, Drive reviewed a 2024 Mazda 2 hatchback in its Evolve variant and found that the pint-sized hatch consumed 6.8L/100km during the testing period.

While it’s thirstier than Mazda’s claimed fuel efficiency of 5.0L/100km, it’s worth noting the Mazda 2 Evolve runs on 91 unleaded, meaning it’s one of the more affordable options when compared to larger hatchbacks.

Beyond the data, The Royal Automotive Club of Queensland (RACQ) – the state’s peak motoring body – recently published its 2024 Vehicle Operating Cost report that looked into how much different cars cost to privately operate over a five-year window.

The RACQ looked at a range of popular petrol hatchbacks like the Hyundai i30, Kia Cerato, Mazda 2, Mazda 3, Suzuki Swift and Volkswagen Polo.

On average, the RACQ report revealed that depending on the variant, refuelling these fan-favourite hatchbacks costs between $110 to $190 per month.

Petrol medium SUV: 7–12L/100km

For petrol-powered medium SUVs, Drive journalists advise that anything between 7–10.0L/100km on freeways and 10–12.0L/100km in busier areas like suburban streets or metropolitan roads is the ideal fuel consumption range for buyers looking into this segment.

Variation in this segment is huge, with some models able to stay below 8.0L/100km on a combined cycle, while heavier, more performance-oriented models consistently clock in above 10.0L/100km.

For example, the AAA’s Real-World Testing results identified the 2023 Hyundai Tucson consumed three per cent less fuel (7.9L/100km) than Hyundai’s claimed fuel efficiency of 8.1L/100km.

In the case of Mazda’s best-selling SUV, the CX-5, real-world testing by Drive found that the CX-5 – in its G25 Touring variant – consumed 9.4L/100km in mostly inner-city driving conditions.

Petrol large SUV: 7–15L/100km

When it comes to large petrol SUVs, consumers should aim for a fuel consumption rating between 7–11.0L/100km for freeway/country driving where the speed is more consistent, and 11–15.0L/100km in urban conditions where the car uses more fuel as it stops and starts in traffic.

In terms of real-world driving, Drive tested a 2023 Subaru Outback Sport GT and found that the large petrol SUV was frugal – despite requiring 95-octane premium unleaded fuel – consuming 8.0L/100km during the reviewing process compared to Subaru’s 9.0L/100km claim.

Diesel large SUV: 7–13L/100km

For diesel-powered large SUVs, Drive recommends anywhere from 7–10.0L/100km in extra-urban driving conditions, and 11–13.0L/100km for drivers travelling around inner-city or suburban streets.

To offer real-world insight, Drive’s Features Editor, Rob Margeit, previously tested the Mazda CX-90 – in its D50e Azami diesel variant – across a mix of city commuting, suburban and highway driving.

During the reviewing period, the CX-90’s 3.3-litre diesel consumed 6.9L/100km, 24 per cent more than Mazda’s claim of 5.4L/100km.

While Mazda’s 74-litre diesel tank has a theoretical maximum range of 1370km per tank, Drive‘s real-world consumption figures revealed that 1072km is more realistic.

Diesel utes: 7–13L/100km

In the case of diesel utes, anything between 7–10.0L/100km for general driving along freeways or country roads is the ideal consumption range.

For ute drivers primarily driving in urban conditions like inner-city or suburban streets, Drive recommends an estimated fuel consumption figure of 12–13.0L/100km.

However, Drive’s Off-Road Editor, Sam Purcell, said these estimations only apply to general unladen driving – without any added vehicle weight such as extra passengers, goods or other items – and the fuel efficiency numbers can climb higher “if you’re doing loaded/off-road/towing”.

Generally speaking, ute drivers who use the vehicle for these situations should aim for 12–16.0L/100km depending on the weight of the load.

Additionally, brands like Toyota, Ford and Isuzu offer an abundance of variants for their top-selling utes in the HiLux, Ranger, and D-Max, respectively. This means that depending on which variant new ute buyers choose, fuel economy ratings could differ.

For reference, the AAA’s Real-World Testing results found that the three-best-selling utes – as mentioned above – and its diesel four-wheel-drive variants had a fuel consumption discrepancy of less than 10 per cent.

Among the three, the Isuzu D-Max consumed the most fuel in real-world AAA testing, up six per cent (8.5L/100km) from its claimed fuel efficiency rating of 7.6L/100km.

A diesel 2024 4×4 Ford Ranger had a two per cent increase in fuel consumption between the advertised lab-tested estimations (7.6L/100km) and the AAA’s real-world testing (7.8L/100km).

While a four-wheel-drive diesel Toyota HiLux consumed the exact amount of fuel in real-world testing as its windscreen sticker figure of 7.9L/100km.

How do you maintain the best fuel efficiency?

If you’ve noticed your car is consuming more fuel than you originally expected, there are several fixes you can try.

A Honda spokesperson told Drive: “Ensure the vehicle is maintained in accordance with the service schedule. Do not load the vehicle with excess luggage. Maintain specific tyre pressure”.

Meanwhile, Nissan Australia suggests you try keeping the car’s windows closed as increased airflow can accumulate ‘drag’ resistance, limiting your air-conditioning use – the A/C unit pulls power from the engine to function – and, where possible, using economy mode “to ensure the transmission up-shifts earlier”.

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