A comprehensive breakdown of all the costs involved in running an electric vehicle compared to petrol in the UK. Real data, real savings.
Understanding the true running costs of electric versus petrol vehicles is essential for making an informed decision. While EVs typically have a higher purchase price, the ongoing running costs are significantly lower across almost every category.
The average UK driver covering 10,000 miles per year can save £1,200-£1,500 annually on running costs by switching from petrol to electric. Over a typical 5-year ownership period, that's £6,000-£7,500 in savings.
The biggest saving comes from the cost of energy. Electricity is dramatically cheaper than petrol per mile.
Based on petrol at £1.45/litre (40 MPG average) and electricity at 24p/kWh home rate (3.5 mi/kWh)
| Category |
Petrol/Diesel
|
Electric
|
Annual Savings
|
|---|---|---|---|
| Cost per Mile Home charging vs petrol | 17-22p | 4-7p | 11-17p/mile |
| Annual Fuel (8,000 mi) UK average mileage | £1,400 | £420 | £980 |
| Annual Fuel (12,000 mi) Above average mileage | £2,100 | £630 | £1,470 |
| Annual Fuel (20,000 mi) High mileage drivers | £3,500 | £1,050 | £2,450 |
Our petrol costs assume a typical family car achieving 40 MPG with fuel at £1.45/litre. This works out to approximately 16.4p per mile.
For electric vehicles, we use the UK average home electricity rate of 24p/kWh and typical EV efficiency of 3.5 miles per kWh. This equates to approximately 6.9p per mile when charging at home.
The cost per mile can vary significantly depending on where and how you charge:
The key to maximising savings is to charge at home as much as possible, ideally using an EV-specific electricity tariff with cheap overnight rates.
Electric vehicles benefit from significant tax advantages in the UK, from road tax to company car benefits.
Current UK tax rates for 2024/25 tax year
| Category |
Petrol/Diesel
|
Electric
|
Annual Savings
|
|---|---|---|---|
| Road Tax (VED) EVs pay minimal from 2025 | £190-£600 | £10 | £180-£590 |
| First Year Rate New car registration | £0-£2,745 | £0 | Up to £2,745 |
| Company Car Tax (40k car) 37% vs 3% BIK rate | £2,960/year | £240/year | £2,720 |
Battery electric vehicles (BEVs) currently pay £0 road tax in the UK. This is a significant saving compared to petrol cars, which pay based on CO2 emissions—typically £180-£580 per year for standard rates.
Note: From April 2025, EVs will start paying road tax, but at a reduced rate compared to petrol vehicles.
This is where EV savings become most dramatic for company car drivers. The Benefit in Kind (BIK) rate for electric vehicles is just 2% compared to up to 37% for petrol cars.
For a £40,000 company car and a 40% taxpayer:
Electric vehicles are exempt from London's Ultra Low Emission Zone (ULEZ) charge of £12.50/day and the Congestion Charge of £15/day. For regular London commuters, this can save over £6,000 per year.
With fewer moving parts and no combustion engine, EVs require significantly less maintenance.
Typical maintenance costs over ownership period
| Category |
Petrol/Diesel
|
Electric
|
Annual Savings
|
|---|---|---|---|
| Annual Service Fewer components | £200-£400 | £100-£200 | £100-£200 |
| Brake Pads Regenerative braking helps | £150-£300 | £100-£200 | £50-£100 |
| Oil Changes No engine oil needed | £80-£150 | £0 | £80-£150 |
| Timing Belt No timing belt in EVs | £300-£600 | £0 | £300-£600 |
| Exhaust System No exhaust in EVs | £150-£500 | £0 | £150-£500 |
Electric vehicles have approximately 20 moving parts in their drivetrain compared to around 2,000 in a petrol car. This dramatic reduction in mechanical complexity translates directly to lower maintenance costs.
Regenerative braking in EVs means the conventional brakes are used far less frequently, extending brake pad and disc life by 50% or more. Many EV owners report never needing to replace brake pads during their ownership.
A common concern is battery degradation and replacement costs. However, modern EV batteries are proving extremely durable:
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Insurance is one area where EVs can sometimes cost more than equivalent petrol cars. This is due to several factors:
However, the gap is narrowing as EVs become more mainstream. Some insurers now offer EV-specific policies with competitive rates. Tips for reducing EV insurance costs:
While EV insurance can be 10-25% higher, this is typically offset by the massive savings in fuel and tax. Even with higher insurance, the total running cost of an EV is still significantly lower.
| Cost Category | Petrol (Annual) | Electric (Annual) |
|---|---|---|
| Fuel/Electricity | £1,640 | £690 |
| Road Tax | £180 | £0 |
| Servicing | £300 | £150 |
| Insurance | £500 | £575 |
| Total Annual Cost | £2,620 | £1,415 |
| Annual Savings with Electric | £1,205 | |
*Based on 10,000 miles/year, UK average prices January 2025. Individual results may vary.