E10 or premium?
At most service stations you'll find E10, regular unleaded petrol (ULP), and premium ULP available. E10 is a blend of 90 per cent unleaded petrol and 10 per cent ethanol which, unlike oil, is a renewable fuel, made from plant-based waste products.
It will generally be the cheapest option at the pump, but check your car's manual to find out if it's recommended for your vehicle. Some later model cars, for example, should be run only on premium unleaded petrol.
While premium ULP is more expensive, it burns more efficiently and because the car runs better, you should get better mileage.
These combine electric motors and conventional engines, which means less fuel consumption than a conventional petrol vehicle and lower ongoing costs. Because of the way their engines function, hybrids are best suited to city driving.
Toyota introduced the first hybrid car in Australia, the Prius, in 2001, so has had time to work with the technology.
Since then, other hybrids have been launched into the market and more are being developed both here and overseas.
Hybrids are more expensive to purchase up front, but fuel costs will be less over the life of the vehicle.
Emissions of hybrid cars are lower than those of conventional vehicles, which can be an important factor for some car buyers.
Despite diesel's reputation as a dirty fuel, modern fuel-injected turbo diesel engines are very efficient, and last longer. While diesel vehicles may cost slightly more than a similar petrol-fuelled car, they become economical if you are making regular long trips.
As a general guide, if you drive 30,000km a year or more, over long distances, the higher cost of a diesel vehicle may be worth it.
Like petrol, diesel is available everywhere, so it's a safe choice.
Diesel engines shine when it comes to towing or carrying heavy loads and driving long distances.
Electric vehicles are not yet widely available in Australia, and those that are available are relatively expensive.
Running costs are obviously much cheaper than fuel-powered cars. But a lack of charging infrastructure means that only people with reasonably short commutes, and somewhere to recharge, could realistically take up this option for now.