Transport

Electric Car vs Petrol: Running Costs Compared for UK Drivers

SYM

The shift to electric vehicles is accelerating in the UK, with EVs now accounting for over 20% of new car sales. But beyond the environmental benefits, many drivers want to know the bottom line: is an electric car actually cheaper to run than petrol? The answer is nuanced and depends on how you drive, where you charge, and what you drive. In this detailed comparison, we break down every major running cost category so you can make an informed decision. Whatever you drive, the SYM app can help you track your transport expenses and find savings.

Fuel vs Electricity: The Energy Cost

The most significant saving from driving electric comes from the cost of energy. Electricity is substantially cheaper per mile than petrol or diesel, though the exact saving depends heavily on where and when you charge.
  • •Home charging (Economy 7 or off-peak tariff): approximately 7-10p per kWh, equating to roughly 2-3p per mile for a typical EV. This is the cheapest way to charge.
  • •Home charging (standard tariff): approximately 24-28p per kWh in 2026, equating to roughly 7-8p per mile.
  • •Public rapid charging: approximately 50-79p per kWh at major networks, equating to 15-25p per mile — significantly more expensive and closer to petrol costs.
  • •Petrol: at £1.40/litre and 40mpg average, a petrol car costs approximately 16p per mile. A less efficient car at 30mpg costs around 21p per mile.
  • •Diesel: at £1.48/litre and 50mpg, a diesel car costs approximately 13p per mile.
  • •Annual comparison for 10,000 miles: Home-charged EV approximately £250-£800. Petrol car approximately £1,600. Diesel car approximately £1,300. The saving is £800-£1,350 per year on energy alone.

Road Tax, Congestion Charge, and Incentives

EVs have historically benefited from generous tax breaks, though some of these are changing. Understanding the current incentives is essential for calculating the true cost difference.
  • •Vehicle Excise Duty (road tax): EVs registered before April 2025 currently pay £0. From April 2025, new EVs pay the standard rate (£190/year in 2025/26). Petrol and diesel cars pay £190/year standard rate, plus a first-year rate based on CO2 emissions that can be over £2,000 for high-emission vehicles.
  • •The expensive car supplement (£410/year for cars costing over £40,000 new) now applies to EVs from April 2025 for the first 5 years.
  • •London Congestion Charge: EVs no longer receive a blanket exemption. The Cleaner Vehicle Discount ended in December 2025 for most EVs. Check Transport for London for current exemptions.
  • •Clean Air Zones: EVs are exempt from charges in Birmingham, Bath, Bristol, Bradford, and other UK cities with Clean Air Zones — a saving of up to £8-£50 per day for affected drivers.
  • •Company car Benefit in Kind (BiK): EVs have a BiK rate of just 2% (2025/26), compared to 20-37% for petrol cars. This makes EVs exceptionally cheap as company cars, saving higher-rate taxpayers thousands per year.
  • •The Plug-in Car Grant has ended, but the EV chargepoint grant still offers up to £350 toward home charger installation for eligible applicants.

Insurance, Servicing, and Maintenance

While EVs save money on fuel and tax, they can be more expensive in some other areas. Insurance costs and tyre wear are two areas where EV owners sometimes pay more.
  • •Insurance: EV insurance premiums are currently 15-25% higher than equivalent petrol cars on average. This is partly due to higher repair costs (specialist battery and electronics work) and the higher purchase price of EVs. However, the gap is narrowing as more insurers enter the EV market.
  • •Servicing: EVs have far fewer moving parts — no oil changes, no timing belt, no exhaust system. Annual servicing for an EV typically costs £100-£200 compared to £200-£400 for a petrol car.
  • •Brake wear: EVs use regenerative braking, which significantly reduces brake pad and disc wear. Many EV owners report brake components lasting twice as long as on a petrol car.
  • •Tyres: EVs are heavier due to battery weight and deliver instant torque, which can increase tyre wear. EV-specific tyres cost 10-20% more than standard tyres. Budget £100-£200 extra per year on tyres.
  • •Battery degradation: Most modern EV batteries retain 80-90% capacity after 100,000 miles. Manufacturer warranties typically cover the battery for 8 years or 100,000 miles. Replacement outside warranty costs £5,000-£15,000, but this is increasingly rare.
  • •MOT: EVs still require an MOT from 3 years old, but the simpler drivetrain means fewer potential failure points.

Total Cost of Ownership Over 5 Years

To get the full picture, we need to look at total cost of ownership including depreciation, finance costs, and all running expenses. Here's a realistic comparison for a mid-range EV versus a comparable petrol car over 5 years and 50,000 miles.
  • •Example vehicles: A Volkswagen ID.3 (EV, approximately £33,000 new) vs a Volkswagen Golf 1.5 TSI (petrol, approximately £28,000 new).
  • •Depreciation over 5 years: ID.3 approximately £15,000 (45%). Golf approximately £13,000 (46%). EVs are holding value better than expected due to strong demand.
  • •Energy costs over 5 years (home charging vs petrol): ID.3 approximately £2,000-£3,500. Golf approximately £8,000.
  • •Insurance over 5 years: ID.3 approximately £4,000. Golf approximately £3,200.
  • •Servicing and maintenance over 5 years: ID.3 approximately £800. Golf approximately £1,800.
  • •Road tax over 5 years: ID.3 approximately £950 (including expensive car supplement). Golf approximately £950.
  • •Total 5-year cost: ID.3 approximately £22,750-£24,250. Golf approximately £26,950. The EV saves approximately £2,700-£4,200 over 5 years despite the higher purchase price.

FAQ

Common questions about electric vs petrol car running costs in the UK.
Is it cheaper to charge an EV at home or use public chargers?+

Home charging is significantly cheaper. On a standard home tariff, charging costs 7-8p per mile. An EV-specific tariff with cheap overnight rates can reduce this to 2-3p per mile. Public rapid chargers cost 15-25p per mile, which is closer to petrol costs and should be used primarily for longer journeys.

Do electric cars really save money overall?+

For most UK drivers doing 8,000-12,000 miles per year with access to home charging, yes. The savings on fuel and maintenance typically outweigh higher insurance costs. The savings are most dramatic for company car drivers due to the low Benefit in Kind rate. However, if you rely entirely on public rapid chargers, the savings are much smaller.

What about the cost of installing a home charger?+

A home wallbox charger (7kW) typically costs £800-£1,200 installed. The OZEV grant covers up to £350 for eligible applicants (renters and flat-owners). The charger pays for itself within 1-2 years through cheaper charging compared to public networks.

Are EVs cheaper on finance than petrol cars?+

EV PCP deals have become increasingly competitive. Some manufacturers offer subsidised finance rates to push EV sales. Monthly payments may be similar to or slightly higher than equivalent petrol cars, but lower running costs mean the total monthly outgoing (finance plus fuel plus tax) is often lower for the EV.

Will EV running costs increase as the government changes tax rules?+

Yes, gradually. Road tax parity arrived in 2025, and the congestion charge exemption has ended. Electricity prices may also rise. However, the fundamental efficiency advantage of electric motors (3-4 times more efficient than combustion engines) means EVs will likely remain cheaper to run per mile for the foreseeable future.

#electric-car#petrol-car#running-costs#ev-uk#car-costs-uk

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