Are electric cars really cheaper to run than petrol? Let's break down the numbers for 2026.
Fuel/Energy Costs
Petrol Car (Average Family Car)
- MPG: 45 MPG combined
- Annual miles: 12,000
- Petrol price: 140p/litre
- Annual fuel cost: £1,690
Electric Car (Average EV)
- Efficiency: 3.5 miles/kWh
- Annual miles: 12,000
- Home charging (EV tariff): 8p/kWh
- Annual charging cost: £275
Annual Savings: £1,415
Even if you use public chargers occasionally (at ~50p/kWh average), an EV typically costs 60-70% less to "fuel" than a petrol car.
Road Tax (VED)
Petrol Car
- First year: £0-2,745 depending on CO2 emissions
- Years 2-6: Standard rate (£190) + expensive car supplement if over £40k
- Year 6+: £190/year
Electric Car (Registered from April 2025)
- First year: £0
- Years 2+: £195/year (same as petrol)
Note: EVs registered before April 2025 still pay £0 VED.
Maintenance Costs
Petrol Car Annual Maintenance
- Servicing: £200-400
- Oil changes: Included in service
- Brake pads: £150-300 (every 2-3 years)
- Exhaust, spark plugs, etc.: £100-200/year average
- Annual average: £350-500
Electric Car Annual Maintenance
- Servicing: £100-200 (fewer parts to check)
- Brake pads: £150-300 (every 4-6 years due to regenerative braking)
- Annual average: £100-200
Annual Savings: £200-300
EVs have fewer moving parts, no oil to change, and regenerative braking reduces brake wear significantly.
Insurance
Insurance costs vary by model, but EVs can be slightly more expensive to insure due to: - Higher repair costs (specialist labour, battery) - Newer technology - Higher vehicle values
Typical difference: EVs cost 10-20% more to insure, but this gap is narrowing.
Depreciation
Petrol Cars
- Lose 50-60% of value over 3 years
- Uncertainty about future petrol car restrictions
Electric Cars
- Currently lose 40-50% over 3 years
- Strong used EV demand
- Battery degradation concerns (mostly unfounded for modern EVs)
Total Cost Comparison (3 Years, 36,000 Miles)
| Category | Petrol Car | Electric Car |
|---|---|---|
| Fuel/Charging | £5,070 | £825 |
| Road Tax | £570 | £195-390 |
| Maintenance | £1,200 | £450 |
| Insurance | £1,800 | £2,100 |
| Total | £8,640 | £3,570-3,765 |
3-Year Saving with EV: ~£5,000
The Catch: Purchase Price
EVs still cost more to buy upfront: - Average new petrol car: ~£25,000 - Average new EV: ~£35,000
However: - Used EVs are increasingly affordable - Government grants reduce new EV costs - Company car tax (BIK) heavily favours EVs
When Does an EV Make Financial Sense?
EVs Are Better If:
- You can charge at home
- You drive 8,000+ miles per year
- You're buying on finance (monthly savings offset higher payments)
- You're a company car driver (2% BIK vs 20-37%)
Petrol May Be Better If:
- You can't charge at home
- You buy very cheap used cars
- You drive under 5,000 miles per year
- You frequently do very long journeys
Our Verdict
For most UK drivers, EVs are now cheaper to own over 3+ years, even accounting for higher purchase prices. The running cost savings (£1,700+/year) are substantial.
Still running a petrol car? Use our fuel price finder to save money on every fill-up, and our calculator to see your annual fuel costs.