Are Electric Cars Cheaper to Run? Real EV Costs vs Petrol and Diesel

Electric cars are usually cheaper to run than petrol and diesel cars in the UK, especially if you can charge at home or use an off-peak electricity tariff. The main savings come from lower energy costs, less routine maintenance and, in many cases, lower road tax and company-car tax.

EV Running Costs, Electricity vs Petrol and Diesel Prices

The biggest day-to-day saving with an electric car is the cost of energy.

Typical UK cost per mile:

Electric car (home charging): average is around 6 to 8p per mile, off-peak charging can be as low as 3 to 6p per mile.
Petrol car: around 19 to 21p per mile
Diesel car: around 14 to 19p per mile

For a driver covering 10,000 miles per year, this can result in significant savings, especially when most charging is done at home using a cheaper tariff.

Public rapid charging is more expensive and can reduce overall savings. This is why it is important to separate home charging costs from public charging when comparing running costs.

EV Charging Costs, Home Charging vs Public Rapid Charging

Home charging is usually the cheapest way to power an electric vehicle in the UK.
Public rapid charging offers convenience but typically costs more per mile. If you rely heavily on rapid chargers, the cost advantage of an EV may be smaller.
For most drivers, the majority of charging happens at home or work, which helps maintain the overall cost benefit.

EV Maintenance Costs, Servicing and Repairs Explained

EVs generally have fewer moving parts than petrol and diesel cars, which tends to reduce routine maintenance costs by 20% -30%. There is no oil change, and brake wear can be lower because regenerative braking helps slow the car down. That said, EVs still need tyres, brake checks, coolant checks where applicable, and regular servicing according to the manufacturer’s schedule.

Electric Car Tax in the UK, Road Tax and Company Car Benefits

Road tax rules matter too. From April 2025, electric cars are no longer exempt from Vehicle Excise Duty, but many still pay less in the first year than higher-emission petrol or diesel cars, and after that they typically move to the standard annual rate. Company-car users can also benefit from the lower Benefit-in-Kind rates for EVs, which is one reason electric cars can be much cheaper for business drivers.

What Affects EV Running Costs? Key Factors for UK Drivers

Your total running cost depends on several factors:

Annual mileage
Access to home charging
Electricity tariff
Vehicle efficiency
Use of public charging

High-mileage drivers who can charge at home tend to see the greatest savings. Drivers who rely heavily on rapid charging may see smaller cost benefits.

EV Running Cost Example UK: 10,000 Miles Per Year

For a typical UK driver doing around 10,000 miles a year, an EV charged mainly at home is often noticeably cheaper to run than a petrol car and usually cheaper than a diesel car too. The exact saving depends on your electricity tariff, the car’s efficiency and how much charging you do away from home. In short, if you have access to affordable home charging, an EV is usually the lower-cost choice over time.

Who Benefits Most from Electric Cars in the UK?

Electric cars can offer significant running cost savings, but the level of benefit depends on your driving habits, charging access and lifestyle. The following groups tend to gain the most from switching to an EV:

1. High-Mileage Drivers, Maximum Savings on Fuel Costs

Drivers who cover long distances each year often see the biggest financial benefit. Lower electricity costs compared to petrol or diesel mean savings increase with every mile, especially when most charging is done at home.

2. Homeowners with Off-Street Parking. Cheapest Charging Access

If you have a driveway or garage, you can install a home EV charger and take advantage of off-peak electricity tariffs. This is typically the cheapest way to run an electric car in the UK and is a major factor in reducing overall costs.

3. Company Car Drivers, Lower Tax Benefits

Electric cars are particularly attractive for business users due to lower Benefit-in-Kind tax rates. This can make a noticeable difference to monthly take-home pay compared to petrol or diesel company cars.

4. Commuters and Daily Drivers, Ideal for Short and Regular Journeys

Drivers with predictable daily mileage, such as commuting to work or school runs, benefit from the convenience of overnight home charging and consistent running costs.

5. Households with Access to Workplace Charging, Extra Savings Potential

If you can charge at work, often at a reduced cost or even for free, your overall running costs can be even lower. This adds flexibility and reduces reliance on public charging networks.

6. Environmentally Conscious Drivers, Lower Emissions and Running Costs

For those looking to reduce their environmental impact, EVs offer zero tailpipe emissions alongside lower running costs, making them a practical and sustainable choice.

Quick takeaway: If you drive regularly and can charge at home or work, an electric car is usually one of the most cost-effective options in the UK.

Electric Car Running Costs FAQs

Are electric cars always cheaper to run than petrol and diesel cars?

What is the biggest saving with an electric car?

Are diesel cars better for long-distance driving?

Does public charging remove the cost advantage?

Do EVs cost less to maintain?

What other costs should I consider?

Are EVs worth it for low-mileage drivers?

Ready to Switch to an Electric Car?

Switching to electric driving is more straightforward than many people expect. With clear information and expert guidance, you can make the move with confidence.

If you have a question that is not covered in our EV Knowledge Hub, our team is here to help.

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