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Are electric cars cheaper to run than petrol cars? Usually, when most charging is done at home and the comparison uses similar-sized vehicles. The advantage can shrink or disappear when you rely on expensive public charging, drive relatively few miles, or choose an EV with higher insurance, finance or purchase costs. There is no single saving that applies to every car.
For a fair UK comparison, separate energy cost per mile from total ownership cost. Use the exact models, current local energy prices, annual mileage, insurance quotes, service schedules, tax position, charging equipment and the journeys you actually make. The calculations and rates below are dated so you can replace them when prices change.
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The short answer: which car is cheaper to run?
Home-charged electric cars generally have the lowest energy cost per mile. HMRC advisory rates effective 1 September 2026 are 7p per mile for home charging and 15p per mile for public charging. These are standardised estimates, not a guarantee of an individual electricity bill.
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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Petrol cars can be competitive when an EV is charged mainly on public networks, when the EV has high energy consumption, or when its insurance and other fixed costs are substantially higher. A petrol car may also be the lower-cost choice if its purchase or lease price is much lower and the owner covers relatively few miles.
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Maintenance often favours an EV because it has fewer mechanical components. Energy Saving Trust estimates servicing and maintenance can be up to 40% lower than for petrol or diesel vehicles, but that is a broad estimate rather than a model-specific promise. Tyres, brakes, suspension, accident repairs, insurance and battery-related work still cost money.
Range is not a simple winner either. Petrol cars can normally be refuelled quickly using an extensive filling-station network. EVs can cover daily journeys easily for many drivers, but practical range depends on weather, speed, heating or air-conditioning, hills, traffic and charging access.
Energy cost per mile: home, work and public charging
HMRC’s 2026 electric rates
HMRC’s advisory electric rates from 1 September 2026 use a weighted efficiency of 3.59 miles per kWh, domestic electricity at 24.47p/kWh and public slow or fast charging at 54p/kWh. On those assumptions:
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| Charging method | HMRC rate | Illustrative cost for 10,000 miles | What it means |
|---|---|---|---|
| Home charging | 7p per mile | £700 | Uses the advisory domestic electricity assumption; your tariff and car efficiency may differ. |
| Public charging | 15p per mile | £1,500 | Uses the advisory public slow/fast charging assumption; rapid chargers and network prices vary. |
The annual figures are simple multiplication of the advisory rates by 10,000 miles. They are not a forecast of your bill and do not include a home charge-point purchase or installation. A workplace tariff, an off-peak domestic tariff or a free charging allowance can produce a different result.
How to calculate your own EV cost
- Find the exact vehicle’s official combined consumption in kWh per mile or kWh per 100 miles. The Vehicle Certification Agency (VCA) publishes official new-car figures intended for comparison.
- Choose the electricity price for where you will charge. Use your actual pence-per-kWh rate for home or work and the current price, including any session or connection fee, for public charging.
- Multiply consumption by price. For example, a car using 0.30 kWh per mile at 25p/kWh costs 7.5p per mile before charging losses or any fixed fee.
- Split the result by charging location. If 70% of miles are charged at home and 30% publicly, calculate each portion separately rather than using one blended rate without showing the assumptions.
Real wall-to-battery losses mean the electricity drawn from the meter can exceed the battery energy shown by the car. If your tariff is billed by the kWh, base a detailed budget on the electricity drawn, using the vehicle or charger’s measured data where available.
How to calculate petrol cost per mile
- Use the exact petrol model’s official fuel consumption, preferably in litres per 100 km or miles per gallon.
- Convert it to litres per mile if needed. A car rated at 8 litres per 100 km uses about 0.1288 litres per mile.
- Multiply by the current local price per litre. Fuel prices change during the year and vary by region.
- Repeat the calculation for motorway, urban and mixed driving if your use is very different from the official test cycle.
The VCA’s fuel-cost method combines official consumption figures with average fuel or electricity prices. Its guidance notes that prices change during the year and vary regionally, so a result is only current for the date and assumptions you state.
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What the government examples actually show
The £1,902 versus £3,320 illustration
The UK Government Clean Energy Campaign presents an illustrative annual comparison based on 10,000 miles. Its EV assumption is 18.5 kWh per 100 km, electricity at 7.5p/kWh, and estimated annual insurance and maintenance of £1,680. Its petrol assumption is 8 litres per 100 km, petrol at 143p/litre, and estimated annual insurance and maintenance of £1,490.
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|---|---|---|
| Electric | £1,902 | 10,000 miles; 18.5 kWh/100 km; 7.5p/kWh; £1,680 estimated insurance and maintenance. |
| Petrol | £3,320 | 10,000 miles; 8 L/100 km; 143p/L petrol; £1,490 estimated insurance and maintenance. |
| Difference | £1,420 | Illustrative annual gap under those stated assumptions. |
The page says the insurance and maintenance estimates were developed by Element Energy from work last commissioned by the Department for Transport in 2021. Treat the figures as an example of how assumptions drive an outcome, not as a current household forecast. Replace the energy prices, insurance quotes, maintenance costs and vehicle data with your own.
The £4.38 charging example
The same campaign gives a separate example vehicle with a stated 259-mile range and combined consumption of 13.1 kWh per 62 miles. At 8p/kWh, it calculates a charge cost of £4.38. The tariff reference is April 2026 and the example excludes charger installation and related charges. It cannot be applied to every EV, tariff or charging session.
Older and broader government estimates
Office for Zero Emission Vehicles guidance updated 10 April 2025 reports independent research estimating average annual EV running-cost savings of £700. The page also cites a January 2024 comparison of about 8p per mile for home charging and 13–17p per mile for petrol or diesel fuel, and says public-network charging was roughly equivalent on average to fuelling an equivalent petrol car at that time.
Those January 2024 figures are historical. They should not be mixed with HMRC’s 7p home and 15p public advisory rates effective from September 2026 without labelling the different dates and assumptions.
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Maintenance: why an EV can cost less, and where it may not
Work an EV normally avoids
Battery-electric cars do not have engine oil, spark plugs, timing belts, exhaust systems or many of the other service items found in petrol cars. Their traction motors have few moving parts, and regenerative braking can reduce use of friction brakes. These differences explain why routine servicing can be simpler.
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Energy Saving Trust puts the potential servicing and maintenance reduction at up to 40% compared with petrol or diesel vehicles. The wording matters: it is an organisation-wide estimate, not a guaranteed percentage for every model, driver or repair invoice.
Costs that still apply to an EV
- Tyres can wear quickly because EVs are often heavy and deliver instant torque. Replacement cost depends on size, compound and vehicle weight.
- Brake discs and callipers still need inspection. Regeneration may reduce pad wear, but corrosion or infrequent use can create problems.
- Suspension, steering, air-conditioning, heating, 12-volt batteries, glass and bodywork are not made free by electric propulsion.
- High-voltage diagnosis, battery cooling components and crash repairs can be expensive when they are required.
- Insurance varies by model, driver, postcode, repair network and battery risk. It is not safe to assume an EV policy is cheaper.
Why a published example can show higher EV insurance and maintenance
In the campaign’s £1,902-versus-£3,320 example, the combined estimated annual insurance and maintenance amount is £1,680 for the EV and £1,490 for the petrol car. That does not contradict the potential for lower EV servicing: the category combines insurance with maintenance, and the assumed vehicles and driver risk are not specified here. Obtain quotes and service schedules for the exact cars you are considering.
Range and everyday usability
Official figures are for comparison, not a promise
The VCA’s Fuel Consumption Guide and the government campaign both stress that official consumption and range figures are obtained under specific laboratory test conditions. Their purpose is to allow direct comparison between models using the same test framework.
The actual range achieved varies with driving style, weather, heating or air-conditioning, road topography and congestion. Cold weather, high motorway speeds, strong headwinds, steep roads and intensive cabin heating can all reduce the distance available from a charge.
Match the car to your journeys
- List your normal daily and weekly distances, including winter motorway trips rather than only the average commute.
- Compare the exact trim’s official range, battery size and consumption. Wheels, tyres and equipment can change the published figure.
- Check whether the car can complete your longest regular journey with a practical reserve in the conditions you expect. Do not plan to use the last few miles of displayed range as routine.
- For occasional long trips, map charging stops, charging speed and alternative sites along the route. Headline range does not tell you how long a stop will take.
Petrol range and refuelling
Petrol cars also have a gap between laboratory and real-world fuel economy. Their practical advantage is usually the speed and familiarity of refuelling: a short stop can add substantial range, and drivers are less dependent on a particular charger being available or operational.
Public charging can change the financial result
Home charging is usually the key to the lowest EV energy cost. A driver without off-street parking may depend on workplace, residential or public charging, where prices, connection fees, parking charges and time limits vary. Rapid charging is commonly priced differently from slow or fast charging; the HMRC 15p-per-mile rate is specifically an advisory public slow/fast assumption, not a universal rapid-charging price.
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Compare a public-charging plan on four dimensions:
- Coverage: whether chargers exist near home, work and regular routes. The available evidence does not establish a universal network-coverage ranking.
- Reliability: live status, payment method, out-of-service frequency and whether an alternative is nearby.
- Speed: maximum car charging rate, charger power, battery temperature and how long you normally need to stop.
- Price: per-kWh rate, session fee, parking fee, membership charge and any idle or overstay fee.
Public charging may therefore narrow the EV energy advantage. The 2025 government guidance’s statement that public charging was roughly equivalent, on average, to fuelling an equivalent petrol car was explicitly price-dependent and based on an earlier comparison.
Home charging: equipment, installation and practical checks
A home charge point can make an EV cheaper and more convenient, but it is not automatically required or suitable. Some owners use a standard domestic socket for occasional low-mileage charging; others need a dedicated unit for faster, scheduled or off-peak charging.
Before including a home charger in your budget, check:
- whether you have off-street parking and permission to install equipment;
- the property’s electrical supply, cable route and earthing requirements;
- installation cost, any grant or tariff condition currently available in your area, and ongoing service fees;
- whether the charger supports scheduling around your electricity tariff;
- how much energy you need between journeys and how long overnight charging will take.
The government campaign’s £4.38 charge example excludes installation and related charges. Add those costs separately rather than hiding them inside an energy-per-mile figure.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Total ownership cost: the calculation that avoids misleading headlines
Energy is only one line in a car budget. Compare each candidate over the same period, such as three or four years, and include both recurring and one-off costs.
| Cost area | What to enter for each car | Common mistake |
|---|---|---|
| Purchase, finance or lease | Current cash price, deposit, interest, monthly payments, balloon payment, lease mileage and end-of-term charges. | Comparing fuel savings with the list price of one car and a discounted finance offer for another. |
| Energy | Official consumption multiplied by dated local electricity or petrol prices, split by charging location. | Using an unusually cheap tariff or a laboratory figure without stating it. |
| Insurance | Quotes for the actual driver, postcode, annual mileage, excess and vehicle trim. | Applying an average EV or petrol premium to an individual policy. |
| Servicing and repairs | Manufacturer schedule, service prices, tyres, brakes, MOT and a repair reserve. | Assuming an EV has no maintenance because it has no engine oil. |
| Tax | Vehicle tax and any benefit-in-kind or company-car treatment that applies to your situation and tax year. | Using a historical exemption after the rules have changed. |
| Charging setup | Home equipment and installation, workplace fees, public charging, parking and memberships. | Counting only the electricity shown on the dashboard. |
| Resale or end value | Expected value, lease return condition and mileage limits. | Assuming battery degradation or resale demand is identical across models. |
The VCA method is useful for the energy line because it keeps official consumption and average prices explicit. It does not replace quotes for insurance, finance, service work or tax.
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A repeatable UK comparison method
- Select like-for-like cars. Compare similar body styles, performance, equipment, passenger space and payload. A small EV and a large petrol SUV will not produce a meaningful “EV versus petrol” result.
- Record dated inputs. Write down the date, fuel price, home and public electricity prices, annual mileage and charging split.
- Calculate energy per mile. Use each model’s official figure, then run a sensitivity case for higher motorway consumption or winter use.
- Get real ownership quotes. Ask insurers and servicing providers for the exact registration, trim and driver details. Price tyres and likely consumables.
- Add access costs. Include a home charge point where relevant, public parking and charging fees, and the cost of alternative transport if a long trip cannot be completed conveniently.
- Compare the same ownership period. Include finance interest or lease terms, tax and expected resale value, not just the first year’s fuel bill.
- Test the practical case. Check daily range, winter reserve, charging stops, towing or load requirements and the availability of a backup charger.
- Run sensitivity scenarios. Show home-heavy, public-heavy and higher-price cases. A conclusion that changes under a realistic price or mileage change is not a robust universal saving.
When an electric car is likely to suit you
- You can charge cheaply at home or work for most miles.
- Your regular journeys fit comfortably within the car’s practical weather-adjusted range.
- You drive enough miles for energy and maintenance savings to offset any higher purchase or finance cost.
- You are comfortable planning occasional charging stops and checking live charger availability.
- The exact EV has acceptable insurance, tyres, service support and resale assumptions.
When a petrol car may still be the better value
- You have no reliable home or workplace charging and would use expensive public charging for most journeys.
- You drive low annual mileage, so energy savings have little opportunity to recover a higher purchase price.
- Your work or leisure involves frequent long-distance trips where fast refuelling and route flexibility matter more than energy cost.
- A comparable petrol model has materially lower insurance, finance, tax or purchase costs.
- You need towing, payload, specialist body styles or local service support that your shortlisted EVs do not provide.
What owners say—and what that evidence does not prove
The UK Government Clean Energy Campaign reports that around 9 in 10 EV drivers would recommend an EV, citing the 2025 Year 1 Electric Vehicle Driver Behaviours and Attitudes Tracker. That is a survey result about recommendation. It is not a measurement of every driver’s savings, achieved range or charging convenience, so use it as context rather than a substitute for your own calculation.
At the end of December 2025, 2.63 million plug-in electric cars were licensed in the UK, according to the Department for Energy Security and Net Zero’s Energy Consumption in the UK 2026. The figure shows the size of the market; it does not establish that an EV is cheaper for a particular household.
Common comparison mistakes and how to correct them
Using one “cost per mile” number for every EV
Correct it by separating home, workplace and public charging and stating the tariff date. The same car can have a very different energy bill under those three arrangements.
Presenting a campaign illustration as a promise
Correct it by listing the vehicle efficiency, energy prices, mileage and insurance-and-maintenance assumptions, then replacing them with your figures.
Comparing official range with a petrol driver’s real-world expectation
Correct it by treating both technologies’ official figures as controlled comparisons and allowing for speed, weather, climate control, terrain and congestion.
Leaving out fixed costs
Correct it by adding finance, insurance, servicing, tyres, tax, charging installation and resale value over the same ownership period.
Assuming public charging is always cheap or always expensive
Correct it by checking the actual networks and prices on your routes. Public charging prices vary by operator, speed, location, parking arrangement and date.
Bottom line for UK buyers
An electric car is most likely to be cheaper to run when it is charged mainly at home, driven enough miles to use the energy saving, and chosen with realistic insurance, maintenance and purchase costs. A petrol car can remain the better financial and practical choice for low-mileage drivers, public-charging-dependent households or drivers whose journeys demand rapid, flexible refuelling.
Use the exact model data and your own dated prices. HMRC’s 1 September 2026 advisory rates, the government’s illustrative £1,902 and £3,320 examples, and the up-to-40% maintenance estimate are useful reference points—but none replaces a full calculation for your car, your journeys and your charging access.
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