Are Electric Cars Cheaper to Run? A Cost Comparison with Petrol and Diesel
Published:
January 11, 2025

The transition to electric cars is gaining momentum, with many drivers asking: Are electric cars cheaper than petrol and diesel vehicles? While the upfront cost of an electric vehicle (EV) can be higher, running costs are often significantly lower. This article breaks down the costs of owning and operating an EV versus traditional internal combustion engine (ICE) cars.

Initial Purchase Price

The purchase price is one of the most noticeable differences between electric and traditional cars. On average, electric vehicles are more expensive upfront. For example, a new mid-range EV like the Nissan Leaf or BMW i4 might cost £5,000–£10,000 more than a comparable petrol or diesel car. However, government incentives such as the Plug-in Car Grant (up to £2,500 for eligible vehicles) can help offset this cost.

It’s also worth considering that EV prices steadily decline as technology advances and production scales up.

Are Electric Cars Cheaper to Run? A Cost Comparison with Petrol and Diesel

Running Costs: Fuel vs. Electricity

Fuel Costs for Petrol and Diesel

Petrol and diesel prices fluctuate, but in 2024, UK drivers typically pay around £1.50–£1.70 per litre. The average petrol car achieves around 40 miles per gallon (mpg), meaning a typical driver could spend £100–£150 per month on fuel, depending on mileage.

Electricity Costs for EVs

Electricity prices vary, but charging an EV at home is significantly cheaper. Using an off-peak energy tariff, charging a 60kWh EV battery (roughly 200–250 miles of range) might cost as little as £5-10. For drivers covering typical UK annual mileage (around 8,000 miles), the monthly charging cost could be £20–£50, far lower than fuel costs for an ICE vehicle.

Public charging stations can be pricier, especially rapid chargers, which may cost 30p–90p per kWh. However, many EV owners rely primarily on home charging for cost efficiency.

Maintenance and Servicing

Electric cars are simpler mechanically than petrol or diesel vehicles. They don’t require oil changes and have fewer moving parts, such as no gearbox or exhaust system. This translates into lower servicing costs.

According to research, EV maintenance costs can be 20–30% lower than those for traditional cars. Additionally, brakes on EVs tend to last longer due to regenerative braking technology, which reduces wear.

Get in touch with our team today

To find out more about our comprehensive range of services, or to book your vehicle in, contact our friendly team of experts today.

Contact us
Are Electric Cars Cheaper to Run? A Cost Comparison with Petrol and Diesel

Road Tax and Other Incentives

In the UK, electric vehicles are exempt from road tax (Vehicle Excise Duty). Petrol and diesel cars, on the other hand, incur annual road tax costs based on CO2 emissions, ranging from £20 to over £500 per year.

Further savings are available for EV drivers in urban areas. For example, electric cars are exempt from London’s Congestion Charge and Ultra Low Emission Zone (ULEZ) fees, saving city drivers hundreds of pounds annually.

Depreciation and Resale Value

Depreciation rates for EVs have been higher historically due to concerns about battery life. However, this changes as battery technology improves and demand for EVs grows. Petrol and diesel cars are also beginning to face faster depreciation due to anticipated bans on new ICE car sales from 2030 in the UK.

The Verdict: Are EVs Cheaper?

Electric cars are generally cheaper than petrol or diesel when considering long-term running costs. Lower fuel and maintenance expenses, tax incentives, and congestion charge savings make EVs cost-effective for many drivers.

While the higher initial purchase price can be a barrier, reduced running costs often offset this over the vehicle’s lifetime. As the UK continues its shift towards electrification, the financial benefits of EV ownership are becoming increasingly apparent.

Thinking of making the switch? Understanding your driving habits and available charging options will help you decide whether an electric car is the right financial choice.

Are Electric Cars Cheaper to Run? A Cost Comparison with Petrol and Diesel
Are Electric Cars Cheaper to Run? A Cost Comparison with Petrol and Diesel