Is an EV Cheaper Than Petrol?

An electric car is usually cheaper to run than a petrol car if you can charge at home, because home electricity costs far less per mile than petrol. If you rely on public rapid chargers, the saving shrinks and can disappear. And running costs are only part of the answer; the price of the car, finance and insurance can outweigh them.

Key takeaways

  • An EV is usually cheaper per mile than petrol when charged at home.
  • Relying on public rapid chargers can reduce or remove the saving.
  • Electric cars now pay vehicle tax at the same standard rate as petrol cars after the first year, and a pay-per-mile charge is planned from April 2028.
  • Lower running costs do not guarantee a lower total cost if the EV costs more to buy or finance.
  • Your answer depends on your mileage, where you charge and the prices you pay.
In this guide

Where EVs usually win

The biggest saving is the cost of energy per mile. The sum is simple:

  • Petrol: price per litre × litres per mile. A UK gallon is 4.54609 litres, so a car doing 40 mpg uses 4.54609 ÷ 40 = 0.114 litres a mile.
  • Electric: price per kWh ÷ miles per kWh.

With illustrative prices of 140p a litre for petrol and 7.5p a kWh for off-peak home electricity:

  • a petrol car at 40 mpg costs about 15.9p a mile in fuel
  • an EV doing 4 miles per kWh costs about 1.9p a mile charged at home

For the latest average pump prices, see the government's weekly road fuel prices. For electricity, use the unit rate on your own tariff.

Where people get this wrong

Most comparisons assume cheap overnight home charging. Public chargers cost much more per kWh, and public charging is standard-rated for VAT at 20%, while electricity supplied to your home normally carries 5%. With effect from 1 October 2026 until 31 March 2027, qualifying domestic electricity in Great Britain (England, Scotland and Wales) is temporarily zero-rated (0% VAT); in Northern Ireland it stays at 5%.

At an illustrative public rapid charging price of 65p a kWh, the same EV costs about 16.3p a mile, slightly more than the petrol car's 15.9p. If you rely on rapid chargers, the running-cost saving can disappear.

A worked example over a year

This is the EV vs Petrol calculator's worked example: 10,000 miles a year, an EV doing 4 miles per kWh with 80% of charging at home at 7.5p and 20% at 65p, and a petrol car doing 40 mpg at 140p a litre. Servicing is £150 a year for the EV and £450 for the petrol car. All prices are illustrative.

  • EV: 2,500 kWh at a blended 19p = £475, plus £150 servicing = £625 a year.
  • Petrol: 1,136.52 litres at £1.40 = £1,591.13, plus £450 servicing = £2,041 a year.
  • Saving with the EV: £1,416 a year.

Change only where the EV is charged:

  • All public charging at 65p: £1,625 + £150 = £1,775. The EV is still £266 a year cheaper.
  • All public charging at 80p: £2,000 + £150 = £2,150. The petrol car is now £109 a year cheaper.

Run your own figures in the EV vs Petrol Calculator.

Tax and servicing

EVs still have some advantages:

  • Servicing: an electric car has no engine oil, spark plugs or exhaust, so servicing is often simpler. Prices vary by make and garage, so check real quotes.
  • Company car tax: fully electric company cars are taxed on a much lower percentage of their list price than petrol cars.

But EVs are no longer tax-free. Electric cars have paid vehicle tax since 1 April 2025. An electric car registered from that date pays £10 in the first year (petrol cars pay a first-year rate based on CO₂), then the standard rate of £200 a year in 2026/27, the same as petrol. Electric cars registered between 1 April 2017 and 31 March 2025 pay £200 a year. Cars with a list price over £40,000, or over £50,000 for electric cars, pay an extra £440 a year for five years; electric cars registered before 1 April 2025 are exempt from this.

The government also plans a mileage-based Electric Vehicle Excise Duty from 1 April 2028: 3p a mile for electric cars and 1.5p a mile for plug-in hybrids. At 10,000 miles a year that would add £300 to an electric car's running costs. The legislation has not yet been passed, so treat this as a planned change.

The part most people ignore

Running cost is only half the story. An EV that costs more to buy, or has a higher monthly finance payment, can cost more overall even when it is far cheaper to run. Insurance can differ too.

To compare the whole picture, add the vehicle cost, insurance, tax, maintenance and energy together with the Total Car Cost Calculator, or work out your full cost per mile with the Cost Per Mile Calculator.

The bottom line

If you can charge at home and drive a reasonable mileage, an EV will usually be cheaper to run than a petrol car. If you depend on rapid chargers, the saving may be small or gone. Whether it is cheaper overall depends on what the car costs you each month, not national averages.

FAQs

Are EVs always cheaper than petrol in the UK?
No. They are usually cheaper to run when charged at home, but not always cheaper overall once the price of the car, finance and insurance are included.
Is public charging cheaper than petrol?
Sometimes, but often by much less than people expect. At a public price of 80p a kWh, the worked example on this page costs more to run than the petrol car.
Do electric cars pay road tax?
Yes. Electric cars have paid vehicle tax since 1 April 2025. One registered from that date pays £10 in the first year and then the standard rate, £200 a year in 2026/27, the same as a petrol car. A mileage-based charge for electric cars is planned from April 2028.
What matters most?
Whether you can charge at home, how many miles you drive, and the total cost of the car, not just its running costs.

The worked examples use illustrative prices, not current market prices. Fuel and electricity prices change often; use the prices you actually pay. This guide is general guidance, not financial advice.

Sources and review

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