Electric vs Diesel Forklifts: Total Cost of Ownership Breakdown

If you’re comparing forklift options in 2025, price is only one part of the equation. The total cost of ownership (TCO) includes not just the upfront cost, but also fuel, maintenance, downtime, and resale value.

In this guide, we’ll compare electric and diesel forklifts in real-world Australian conditions to help you decide what works best for your operation.

Upfront Cost: Diesel Still Wins on Initial Price

• Diesel forklifts are usually cheaper upfront, especially in the used market.

• Electric forklifts cost more at the start, especially with lithium-ion batteries but this gap is narrowing.

Typical Examples:

• New 2.5T Diesel forklift: $25,000–$32,000

• New 2.5T Electric lithium-ion forklift: $30,000–$38,000

Fuel vs Power Costs

Fuel cost is where electric forklifts shine.

• Electric forklifts cost around 30–50% less to run per hour than diesel on average
  

• Charging costs depend on your electricity rate and whether you’re charging off-peak

• Diesel forklifts require frequent refuelling, and diesel prices & availability remain volatile and unpredictable.

Ballpark usage:

• Diesel: ~$3–4 per operating hour
  

• Electric: ~$1.20–2.00 per hour (depending on battery type and charging setup)

Maintenance & Servicing

Electric forklifts, although complex in some ways, have far fewer moving parts which means less to break and fewer service hours over time.

• No engine oil, filters, or exhaust systems
  

• Regenerative braking reduces brake wear
  

• Longer service intervals for batteries and electronics

Diesel forklifts, however, remain easier to repair in regional or remote areas where diesel mechanics are more available, removing the need to go to specialists in your given manufacturer.

Emissions & Workplace Environment

• Electric forklifts are fume-free and whisper-quiet, ideal for indoor or cold storage use
  

• Diesel forklifts produce emissions and noise; they’re best for outdoor or high-power applications
  

• Some newer diesel units include particulate filters or Stage V compliance, but they still can’t match electric for indoor comfort in most cases.

Resale & Battery Replacement

• Diesel forklifts retain resale value due to their mechanical simplicity
  

• Electric forklifts with lithium-ion batteries hold value better than older lead-acid models
  

• Battery replacement is a key cost to factor in—expect to replace lithium batteries after 7–10 years

Final Verdict: Which Forklift Is Right for You?

Choose electric forklifts if you:

• Operate indoors or in regulated environments
  

• Run long hours and want lower ongoing costs
  

• Want a quieter, cleaner workspace

Choose diesel forklifts if you:

• Work outdoors, on slopes or uneven terrain
  

• Need maximum torque or longer continuous uptime
  

• Have limited access to charging stations

Either way, Machines4U constantly offers hundreds of new and used electric and diesel forklifts available Australia-wide. Filter by fuel type, price, and capacity to find the right unit for your operation, then reach out to a seller if you have any questions about a specific listing.