New analysis has revealed that EVs cost 50.2% less to run than equivalent petrol cars, with annual running costs of £1,154 compared to £2,316 for conventional vehicles. The research, conducted by UK charging manufacturer Andersen, examined road tax, fuel costs, servicing, and insurance premiums.
The most significant savings come from recharging versus refueling costs. Petrol car drivers covering 10,000 miles annually spend approximately £1,209 on fuel, while EV drivers using home charging on dedicated tariffs pay just £174 for electricity. These calculations are based on current average EV tariffs of 7.55p/kWh, with potential savings increasing further on the cheapest available rate of 5p/kWh, which would reduce annual charging costs to £115.
Andersen’s customer data shows that 92% of EV charging occurs at home, with only 8% using public charging networks. Even when factoring in occasional use of more expensive ultra-rapid motorway charging at 81p/kWh, EV drivers still pay approximately 25% less for power than petrol drivers.
Servicing costs also favor EVs, according to The Car Expert’s data. Annual EV servicing averages £232, compared to £295 for petrol vehicles. The five-year servicing cost difference is even more pronounced, with EVs costing £3,857 versus £5,514 for petrol cars.
However, insurance remains more expensive for EVs, with Confused.com reporting that electric car drivers pay an average of £125.81 more annually than petrol car owners. Yet this gap is narrowing, with EV insurance costs falling 18% in 2024 alone. The trend is expected to continue as electric vehicle adoption increases, with the Society of Motor Manufacturers and Traders reporting a 21.4% rise in BEV ownership in 2024.
Road tax currently favors EVs, with zero charges compared to a minimum £190 fee for petrol vehicles. This advantage will diminish slightly from April 2025, when new EVs will incur a £10 first-year charge, followed by £190 annually thereafter.
“Our research shows definitively that electric vehicles are cheaper to own than petrol vehicles,” said David Martell, CEO of Andersen. “To build increased momentum in the shift to clean electrified mobility, it is crucial that more UK drivers better understand true EV ownership costs – including ultra-low ‘smart’ charging tariffs, incredible savings on road tax and servicing, and rapid falls in insurance costs.”
