Electric Car Running Costs vs Petrol in the UK

Summary

• Electric cars are significantly cheaper to fuel than petrol or diesel — charging at home costs around 3–5p per mile compared to 12–18p per mile for a petrol car.
• EVs pay zero road tax (VED) until at least 2025, have lower servicing costs, and are exempt from most congestion and clean air zone charges in the UK.
• Higher purchase prices and insurance costs partly offset the running cost savings, but the gap is narrowing as EV prices fall and more models become available second-hand.

Are electric cars really cheaper to run? The short answer is yes — but the full picture is more nuanced. Here is a comprehensive side-by-side comparison of every major running cost for electric and petrol cars in the UK.

Fuel vs Charging Costs

This is where EVs shine. Electricity is far cheaper than petrol or diesel on a per-mile basis.

Cost Factor	Electric Car	Petrol Car
Home charging cost per mile	3–5p	N/A
Public charging cost per mile	8–15p	N/A
Petrol cost per mile	N/A	12–18p
Annual fuel cost (10,000 miles)	£300–£500 (home charging)	£1,200–£1,800

Home charging on a cheap overnight tariff (around 7–10p per kWh) is the most economical option. Public rapid charging is more expensive but still typically cheaper than petrol.

Use fuel price comparison tools to find the cheapest petrol near you if you still run a combustion engine.

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Road Tax (VED)

Electric cars registered before 1 April 2025 pay zero Vehicle Excise Duty (VED). This saves around £180 per year compared to a typical petrol car.

From April 2025, new EVs will start paying the standard first-year rate and then the flat annual rate like other vehicles. However, EVs will still avoid the expensive first-year rates charged on cars with high CO2 emissions.

For existing EV owners, this change will add a cost that did not previously exist. Factor this into long-term ownership calculations.

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Insurance Costs

EV insurance tends to be more expensive than equivalent petrol cars. This is due to:

• Higher vehicle value: EVs cost more to buy, increasing the insured amount.
• Specialist repair costs: Battery and electrical system repairs require specialist technicians.
• Fewer approved repairers: Limited repair networks push up costs.
• Parts availability: Some EV parts take longer to source.

On average, EV insurance costs 15–25% more than an equivalent petrol car. This gap is narrowing as more EVs enter the market and repair expertise grows.

Shop around and compare quotes. Some insurers specialise in EVs and offer competitive rates. Check our guide to UK car insurance types for more details.

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Servicing And Maintenance

Electric cars have far fewer moving parts than petrol cars. This means less can go wrong and servicing is cheaper.

Parts EVs do not have:

• No engine oil to change.
• No timing belt or cambelt.
• No exhaust system.
• No clutch (in single-speed EVs).
• No spark plugs.

Typical annual servicing costs:

• Electric car: £70–£150 per year.
• Petrol car: £150–£400 per year.

EVs still need brake fluid changes, tyre replacements, and cabin filter changes. Brake pads last much longer in EVs because regenerative braking does most of the work.

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Congestion Charges And Clean Air Zones

If you drive in London or other cities with Clean Air Zones (CAZ), an EV saves you significant money:

• London Congestion Charge: EVs were previously exempt but now pay the full £15 daily charge. The Cleaner Vehicle Discount ended in December 2025.
• London ULEZ: EVs are exempt from the £12.50 daily charge.
• Other Clean Air Zones: Birmingham, Bristol, Bath, and other cities exempt zero-emission vehicles from daily charges of £8–£50.

For city drivers, these exemptions add up to hundreds or even thousands of pounds per year.

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Depreciation

Depreciation is the biggest cost of car ownership. EVs have historically depreciated faster than petrol cars, but this is changing.

Popular models like the Tesla Model 3 and Volkswagen ID.3 hold their value better than many petrol equivalents. As demand for used EVs grows, resale values are stabilising.

Battery warranty is key to EV residual values. Most manufacturers offer 8-year, 100,000-mile battery warranties, which gives buyers confidence in used EVs.

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Total Annual Cost Comparison

Here is a side-by-side total for a typical 10,000-mile year:

Cost Category	Electric Car	Petrol Car
Fuel / charging	£400	£1,500
Road tax	£0 (until 2025)	£180
Insurance	£650	£550
Servicing	£100	£300
ULEZ (if applicable)	£0	£3,125 (250 days)
Total (no ULEZ)	£1,150	£2,530

Excluding purchase price and depreciation, an EV can save over £1,000 per year in running costs. The savings are even greater for high-mileage drivers and those in clean air zones.

High-mileage drivers see the biggest savings from switching to electric. A driver covering 20,000 miles per year could save over £2,000 annually on fuel alone by switching from petrol to home-charged electric.

Even accounting for higher insurance and the eventual introduction of road tax on EVs, the overall running cost advantage is clear. As battery technology improves and prices continue to fall, the financial case for electric cars only gets stronger.

For a broader look at all car ownership costs, see our car running costs guide. And always run a car history check before buying any used vehicle.

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