How to Save Money on Petrol | Carpooling with Herdy

How to save money on petrol —
without driving less.

Petrol prices are at record highs. For most people, the commute still has to happen. Carpooling is one of the few options that cuts the cost of the actual trip — not just the frequency.

91¢

ATO rate per km
2026–27

50%

Typical fuel cost
reduction

$2,000+

Annual saving
3 rides/week

Why carpooling halves your fuel bill

The ATO calculates that the variable cost of running a car — fuel, maintenance, and tyres — is 91 cents per kilometre for 2026–27. That's the cost that changes depending on how much you drive.

When you carpool as a passenger, you contribute roughly half that cost. The driver recovers their running costs. You travel for a fraction of what it would cost to drive alone.

The fixed costs — registration, insurance, depreciation — stay the same regardless. But for the commute itself, carpooling cuts the variable cost significantly, every trip.

For a 20 km commute one way, that's approximately $9–15 saved per day as a passenger versus driving solo. Over 48 working weeks at three days a week, that's over $1,500 a year — just in running costs.

One-way distance	Passenger pays per trip	Annual saving vs driving solo (3 days/week, 48 weeks)
10 km	~$5–7	~$800–1,100
15 km	~$7–10	~$1,200–1,600
20 km	~$9–13	~$1,500–2,100
25 km	~$11–16	~$1,900–2,600
35 km	~$16–22	~$2,600–3,500
45 km	~$20–28	~$3,300–4,500

Based on ATO 91¢/km rate, fair cost-splitting between driver and passenger. Parking not included.

Carpooling saves money three ways at once

Fuel & running costs

As a passenger you pay a fair share of the driver's running costs — typically half. Your personal fuel cost drops to zero. The driver recovers their costs. Both win.

Parking

CBD and urban parking costs $20–60 per day. As a passenger you're dropped at the door — no parking cost, no time lost finding a space. That's up to $14,000 saved annually for daily CBD commuters.

Vehicle wear

Every kilometre you don't drive is wear you're not putting on your car. Tyres, brakes, oil — carpooling as a passenger on regular commutes meaningfully extends the time between services.

Three steps to a cheaper commute

Open the app

The first thing you see is rides already happening near you — no search required. Someone from your suburb is probably already heading your way.

Join the ride

Send a ride request, sort the pickup in the in-app chat, and confirm. No phone calls, no manual coordination. The cost splits automatically — no cash, no awkwardness.

Save every week

The more regularly you carpool, the more you save. Set up recurring rides with the same driver and the arrangement practically runs itself — same time, same pickup, week after week.

Common questions

How much can I realistically save on petrol by carpooling?

For a typical 20–25 km commute each way, carpooling as a passenger saves approximately $9–15 per day in running costs — around $1,500–2,500 per year at three days a week. Shorter routes save proportionally less; longer routes more. See the table above for estimates based on your distance.

Does carpooling actually reduce fuel costs or just split them?

As a passenger, you reduce your personal fuel cost to zero — you're not driving at all. The contribution you make to the driver covers a share of their running costs. Your net saving versus driving solo is the full cost of your own fuel and running costs, minus the passenger contribution. That's typically a 50–70% reduction in the effective cost of the journey.

Is carpooling legal in Australia?

Cost-sharing carpooling is legal across Australia. The key principle is that drivers recover their actual running costs — they don't profit from the arrangement. Herdy is built around this model. Regulations vary by state and territory; Herdy operates in compliance with the rules applicable in each jurisdiction where it is active.

What if there's no carpool on my route yet?

Post your commute in the app — as a driver or a passenger. As more people in your area join, the network grows and matches happen faster. You can also set a ride alert and Herdy will notify you as soon as a driver posts a matching ride near you.

How to save money on petrol — without driving less.