Electric Car vs Petrol: Running Cost Comparison

Electric cars cost far less to run per mile, but the upfront purchase price is higher and tax benefits are changing. On a £250 petrol car at 10,000 miles/year, you'll spend roughly £1,200/year on fuel. The same journey in a £40,000 electric car costs about £300/year in electricity — but only if you charge at home. Add in tax, maintenance, and financing costs, and the full picture looks different.

This guide compares the real running costs of electric vs petrol cars over 5 years, with worked examples and a framework to calculate which makes sense for your situation.

The Running Cost Reality

When people ask "are electric cars cheaper?", they usually mean fuel costs. The answer is yes — electricity is much cheaper than petrol. But fuel is only one part of running costs. Vehicle tax, insurance, maintenance, tyre wear, and the upfront purchase price all matter.

The petrol car advantage: Lower purchase price, established servicing network, no range anxiety.

The electric car advantage: Cheaper per-mile running costs, zero tailpipe emissions, lower maintenance, and improving charging infrastructure.

For most people doing 10,000–15,000 miles/year with a home charging point, electric cars become cheaper to run after 5–7 years. If you do higher mileage, rely on public charging, or can't charge at home, the payback takes longer.

Let's work through real figures.

Fuel vs Electricity: The Per-Mile Breakdown

On petrol at average UK prices:

Petrol cost: [STAT NEEDED: current UK average petrol price per litre, 2026 Q1]
Typical fuel economy: 40–55 mpg (a modern petrol hatchback is around 45 mpg)
Cost per mile: roughly 12–15p/mile
10,000 miles/year = £1,200–1,500/year in fuel

On electricity (home charging):

Typical EV efficiency: 3–4 miles per kWh
Cost per kWh: [STAT NEEDED: typical UK domestic electricity unit rate, 2026 Q1]
Cost per mile: roughly 3–4p/mile
10,000 miles/year = £300–400/year in electricity

That's a saving of £800–1,100/year in fuel costs alone — nearly 80% cheaper per mile.

But this assumes:

You charge at home (public rapid charging is much more expensive, at 20–40p per kWh).
You have a modern petrol car (older ones manage 25–35 mpg and cost more to run).
UK average electricity rates (Economy 7 tariffs or off-peak charging would lower this further).

Over 5 years of 50,000 miles, you save £4,000–5,500 on fuel if you switch from petrol to electric.

Vehicle Tax (VED): The Big Difference

Here's where electric cars had a dramatic advantage — until recently.

Petrol cars: Standard VED rate of [STAT NEEDED: current standard VED for petrol cars]. A typical £25,000 petrol car costs £155–190/year in road tax.

Electric cars (until 31 March 2025): £0 VED. Complete exemption.

Electric cars (from 1 April 2025 onwards): [STAT NEEDED: new VED rate for electric cars from April 2025]. The zero-rate exemption is ending, which materially changes the financial case.

If you're buying in early 2026, you may get 1–2 years of free tax before the new rules apply. After that, the tax advantage shrinks significantly.

5-year VED comparison (estimated):

Petrol car: £775–950
Electric car (if purchased pre-April 2025): £0–190
Difference: £585–950 saved

Add this to fuel savings and you're looking at £4,500–6,500 ahead over 5 years just from fuel and tax. That's substantial, but the April 2025 change means less advantage going forward.

Maintenance: Where Electric Cars Shine

Petrol cars need regular servicing: oil changes every 6,000–10,000 miles (£30–60), spark plugs, timing belts, coolant flushes. A full service every 12,000 miles or annually costs £150–300.

Electric cars have far fewer moving parts. No oil, spark plugs, exhaust system, or transmission fluid. Main servicing items are:

Brake fluid check (rarely needed because regenerative braking does most of the work)
Tyre rotation (EVs are heavier and wear tyres faster)
Cabin air filter
Battery health monitoring

Annual EV maintenance is roughly £100–150. Major repairs are rare in the first 5 years (battery warranties cover 8 years / 100,000 miles).

5-year maintenance comparison:

Petrol car (servicing + repairs): £1,200–1,800
Electric car (servicing only): £500–750
Difference: £450–1,050 saved

Tyre wear is a wash — EVs wear them faster due to weight, but regenerative braking reduces friction-brake wear. It roughly evens out.

Total Cost of Ownership: 5-Year Example

Let's build a complete example comparing a £25,000 petrol hatchback vs a £38,000 electric hatchback (typical prices, early 2026).

Cost	Petrol Car	Electric Car	Difference
Purchase price	£25,000	£38,000	+£13,000
Fuel/electricity (50k miles)	£5,000–6,000	£1,200–1,600	Save £3,500–4,500
Vehicle tax (5 years)	£775–950	£0–200	Save £575–950
Maintenance & repairs	£1,500	£600	Save £900
Total 5-year cost	£32,275–33,450	£39,800–40,400	+£6,525–8,125
Cost per mile (50k)	65–67p	79–81p	—

The bottom line from this example: After 5 years, the electric car costs £6,500–8,000 more in total. But this ignores two critical factors:

You still have a battery with 8–10 years of life remaining and good resale value.
Residual values are still uncertain (electric cars are relatively new to the used market).

If you're financing both cars over 5 years:

Petrol: £25,000 loan at 5.9% over 5 years = £471/month + running costs
Electric: £38,000 loan at 5.9% over 5 years = £717/month + running costs

The electric car is £246/month more in payments but saves £150–165/month in fuel and tax. Net cost: £80–96/month more. This is why understanding how financing periods affect total cost matters — the same principle applies to mortgages, where a longer term reduces monthly payments but increases the total amount paid. See our 25-Year vs 30-Year Mortgage guide for the same framework applied to property.

What You Actually Need to Know

Home charging is essential. If you rely on public rapid chargers at 20–25p per kWh, electricity costs jump to 10–15p per mile, nearly matching petrol. This wipes out most of your saving.

Range and daily mileage matter. A 250-mile electric car makes sense if you do 30 miles/day. If you regularly drive 150+ miles in one go, you'll spend time at chargers. Petrol remains faster for long journeys.

The upfront cost hit is real. Even with fuel and tax savings, it takes 5–7 years for an electric car to pay for itself vs a comparable petrol car. You need to keep the car that long for it to make financial sense.

Battery degradation is slow. Modern EV batteries lose 2–3% capacity per year. After 5 years, you've lost 10–15% of range. The battery is still usable (and usually under warranty), but real-world range drops noticeably.

Used electric cars are cheaper. A 3-year-old electric hatchback might cost £24,000 vs £18,000 for an equivalent petrol car. The upfront gap is smaller, which improves your payback period. See our Buying New vs Second-Hand guide for a full comparison.

Frequently Asked Questions

How much does it cost to fully charge an electric car at home?

A typical EV has a 50–70 kWh battery. At current UK rates of [STAT NEEDED: price per kWh], a full charge costs £10–15. That gives you 250–300 miles of range. Compare that to a £50–70 petrol fill-up for the same distance.

What if I can't charge at home?

Public chargers cost 20–40p per kWh for rapid charging, often with connection fees. A full charge could cost £15–30. Slower public chargers at supermarkets or car parks are sometimes free but take 6–8 hours. If you rent, park on the street, or live in a flat, an electric car is much harder to justify unless your area has excellent public charging infrastructure.

Are electric cars actually cheaper to insure?

Insurance for new electric cars is similar to or slightly higher than comparable petrol cars (battery repairs are expensive). Used electric cars can be cheaper to insure once they've depreciated. There's no fixed rule — shop around.

Will my electricity bill skyrocket?

Charging an EV adds roughly £250–350/year to your electricity costs (if you charge daily at home). That's still far cheaper than the £1,200–1,500/year you'd spend on petrol.

What about battery replacement? Won't that be expensive?

Battery warranties typically cover 8 years / 100,000 miles for 70–80% capacity. Most owners won't need a replacement in the first 10–12 years. When it eventually happens, costs are falling — currently £5,000–15,000 for a full pack, but expect that to drop as the market scales.

How long do electric car batteries actually last?

Real-world data shows degradation of 2–3% per year. A battery retaining 85% capacity after 8 years is typical. Some cars are reaching 200,000+ miles with 90% of their original range. The battery is usually the last component to fail.

Is it worth buying a used electric car?

Often yes. A 5-year-old electric car with 80,000 miles has lost 10–15% range but costs 30–40% less than new. If your daily commute is 50 miles or less, the reduced range isn't a problem. You'll have 2–3 years of battery warranty remaining. Always get a pre-purchase battery health check.

Should I wait for prices to drop, or buy now?

Electric car prices are falling, but so are petrol car prices. The gap isn't narrowing as fast as headlines suggest. If you need a car now and have home charging, the financial case is solid at current prices. If you don't have home charging, wait until public infrastructure improves.

Making Your Decision

The numbers that matter for your decision:

Your daily commute distance. Does it fit within an EV's real-world range?
Where you'll charge. Home charging is essential for the sums to work.
How long you'll keep the car. You need 5–7 years for payback.
Your finance options. PCP, HP, or personal loan all change the monthly cost equation. See our PCP vs HP vs Personal Loan guide for a comparison.

The financial case for electric cars is strongest if you do 10,000–15,000 miles/year, charge at home, and keep the car for 5+ years.

For broader context, see our rent vs buy framework if you're deciding whether to own a car at all, or try our online calculators to run the specific numbers for your situation rather than relying on these estimates.

Run your own numbers before deciding. The "right" answer depends entirely on your mileage, charging access, and how long you plan to keep the car.