Electric Car Running Costs vs Petrol in the UK: A 2025 Cost-Per-Mile Guide

Electric car running costs in the UK are typically lower than petrol for drivers who can charge at home on a standard tariff. At around 24p per kWh on a typical home electricity rate, a car achieving 3.5 miles per kWh costs roughly 7p per mile to fuel. A petrol car doing 45 miles per gallon at £1.45 per litre works out at about 15p per mile. Over 10,000 miles a year, that fuel saving alone is close to £800.

The picture is more nuanced once you factor in purchase price, insurance, depreciation, and public charging costs. An EV charged exclusively on motorway rapid chargers can cost 20p per mile or more, wiping out the fuel advantage entirely. The right answer depends on how and where you drive.

This guide breaks down EV vs petrol running costs for UK drivers in 2025, with worked examples and the variables that matter most. Use our EV vs petrol calculator to compare your own mileage, fuel prices and charging setup.

Fuel and energy: the core cost-per-mile comparison

The biggest day-to-day difference between electric and petrol cars is the cost of energy per mile. Petrol prices in the UK have stabilised somewhat since the peaks of 2022, but at typical 2025 forecourt prices of £1.40 to £1.50 per litre, even an efficient petrol hatchback costs 14p to 17p per mile in fuel alone.

Electric cars are measured in efficiency by miles per kWh rather than miles per gallon. A typical mid-size EV achieves 3.2 to 3.8 miles per kWh in real-world mixed driving. At a home charging rate of 24p per kWh, that translates to 6.3p to 7.5p per mile. On an off-peak tariff charging at 8p per kWh overnight, the same car drops to 2.1p to 2.5p per mile.

For a deeper total-cost comparison including purchase price and depreciation, see our full EV vs petrol cost comparison for UK drivers. For grants, company car tax and other incentives, read electric vehicle incentives in the UK and Europe.

Home charging vs public charging

Where you charge determines whether an EV is cheap to run or surprisingly expensive. Home charging on a standard variable tariff is the baseline most cost comparisons assume. If you have off-street parking and can install a 7kW home charger, you control when and how cheaply you charge.

Off-peak tariffs from suppliers such as Octopus Intelligent or EDF GoElectric offer rates as low as 7p to 9p per kWh during overnight windows. Scheduling your car to charge between midnight and 7am can cut your per-mile energy cost by two thirds compared with the standard rate. For a driver covering 10,000 miles per year, that difference is worth £400 to £500 annually.

Public charging is a different story. Slow on-street chargers typically cost 45p to 55p per kWh. Rapid chargers at motorway services often charge 69p to 85p per kWh. At the upper end, a car doing 3.5 miles per kWh costs more per mile than petrol. Drivers who rely heavily on public infrastructure, particularly those without a driveway, need to model their costs carefully rather than assuming EV always wins.

Workplace charging

Many UK employers now offer free or subsidised workplace charging. If you can charge at work five days a week, your effective home charging need drops sharply. A commuter doing 40 miles per day who charges fully at the office may only need home charging at weekends, making even a standard electricity tariff highly economical.

Workplace charging benefit in kind was reduced to 1% for the 2025/26 tax year, making it an attractive perk for employees. The employer pays for the electricity, and you pay tax on a nominal benefit value. For most salary levels, the tax cost is modest compared with the fuel saving.

Vehicle Excise Duty and road tax

From April 2025, zero-emission vehicles are no longer exempt from Vehicle Excise Duty. New EVs registered from that date pay the lowest first-year rate, then the standard annual rate of £190 from year two, the same as most petrol cars. Existing EVs registered before April 2025 retain their zero-rate VED for now, but new buyers face this additional annual cost.

Electric cars costing more than £40,000 also attract the expensive car supplement of £410 per year for five years from the second year of registration. This applies to many mid-range and premium EVs, and it narrows the tax advantage that electric cars previously enjoyed. A Tesla Model 3 Long Range or a Kia EV6 above the threshold will cost £600 per year in VED from year two.

Petrol cars pay VED based on CO2 emissions in the first year, then the standard rate. For most modern petrol cars registered after 2017, the annual cost is also £190. On road tax alone, the running cost difference between a new EV and a new petrol car is now minimal for vehicles under the £40,000 threshold.

Insurance and maintenance

EV insurance premiums have historically been higher than equivalent petrol models, reflecting higher repair costs, expensive battery components, and less mature claims data. In 2025, the gap has narrowed as insurers build more experience with electric vehicles, but many EV drivers still pay 10% to 20% more than they would for a comparable petrol car.

Maintenance costs generally favour electric cars. There is no engine oil to change, no timing belt, no exhaust system, and regenerative braking reduces wear on brake pads. An EV typically needs an annual service check rather than a full service with fluid changes. Over a five-year ownership period, maintenance savings of £500 to £1,000 compared with petrol are realistic for most drivers.

The caveat is battery degradation and out-of-warranty repairs. Most manufacturers warrant the battery for eight years or 100,000 miles, guaranteeing at least 70% capacity. Outside warranty, a battery replacement can cost £5,000 to £15,000 depending on the model, though this is rare within a typical ownership cycle and most cars are sold or traded before battery replacement becomes relevant.

Depreciation and purchase price

Running costs are only part of the picture. EVs have historically depreciated faster than petrol equivalents, though this is changing as the market matures. A new electric car costing £35,000 might be worth £18,000 to £20,000 after three years. A petrol equivalent at the same purchase price might retain £20,000 to £22,000.

The used EV market has grown substantially. Second-hand electric cars now offer some of the best value in the market, particularly models three to five years old where the steepest depreciation has already occurred. Buying used can make the total cost of ownership competitive even before fuel savings are counted.

Purchase incentives in the UK are limited compared with some European countries. The plug-in car grant ended in 2022. Company car drivers benefit from much lower Benefit in Kind rates on EVs, at 2% for 2025/26, compared with 28% or more for many petrol cars. If you receive a company car, this tax difference often outweighs every other running cost consideration.

Worked example: 10,000 miles per year

Consider a driver covering 10,000 miles annually, comparing a petrol Ford Focus (45 mpg) with an electric Volkswagen ID.3 (3.5 miles per kWh). Petrol at £1.45 per litre costs approximately £1,460 per year in fuel. Home charging at 24p per kWh costs roughly £686 per year. The fuel saving is about £774.

Add VED at £190 each, insurance at an assumed £50 more for the EV, and maintenance saving of £150 for the EV. The annual running cost advantage for the electric car is approximately £684 before depreciation. Over three years, that is more than £2,000 in lower running costs, though the EV may have depreciated £2,000 to £4,000 more over the same period.

If the same EV driver used rapid chargers for 50% of their energy at 75p per kWh and home charging for the rest, the annual charging cost rises to around £1,150. The fuel saving against petrol drops to roughly £310, and the overall running cost advantage shrinks considerably. Your personal mix of home, workplace and public charging determines which scenario applies to you.

High-mileage drivers: where EVs win most clearly

Drivers covering 15,000 to 20,000 miles per year see the largest absolute savings from switching to electric, provided they can charge at home or work. At 15,000 miles, the home-charging saving against petrol can exceed £1,100 per year. For company car drivers paying BiK on a petrol car versus 2% on an EV, the tax saving alone can run to £3,000 to £5,000 annually for higher-rate taxpayers.

High-mileage drivers who depend on public charging face a harder calculation. Fleet operators and delivery drivers increasingly use depot charging at commercial rates well below public rapid charger prices. If you drive for work and your employer provides charging infrastructure, the economics are strongly in favour of electric.

Conversely, very low-mileage drivers covering fewer than 5,000 miles per year may never recover the higher purchase price of an EV through fuel savings alone. If you drive infrequently, a efficient petrol or hybrid car may be the more economical choice on a total cost basis.

Factors that change the calculation in 2025

Electricity prices remain volatile. The energy price cap affects standard variable tariffs, and wholesale price shifts can flow through to your per-mile cost within months. Petrol prices are similarly subject to global oil markets and fuel duty decisions. Neither fuel source offers long-term price certainty.

The expansion of the UK public charging network continues, with more 150kW and 350kW rapid chargers reducing charging time on long journeys. Charge point operators are competing on price, and membership schemes from providers like BP Pulse, Gridserve and InstaVolt offer discounted per-kWh rates that bring public charging closer to home tariff levels.

Vehicle efficiency varies significantly between models. A smaller, lighter EV may achieve 4.5 miles per kWh while a large SUV struggles to reach 2.8. When comparing costs, use the real-world efficiency figures for the specific models you are considering, not generic averages.

How to calculate your own running costs

Start with your annual mileage and current fuel spend. Divide your yearly petrol cost by miles driven to get your actual cost per mile today. Then estimate EV charging costs using your home electricity rate, the efficiency of the EV you are considering, and a realistic split between home and public charging.

Add annual VED, insurance quotes for both vehicles, and an allowance for maintenance. The EV vs petrol calculator handles the fuel and charging maths automatically and lets you adjust variables to see how sensitive the result is to electricity price, mpg and mileage.

If you are choosing between a new EV and a new petrol car, factor in purchase price and expected depreciation over your planned ownership period. If you are comparing used vehicles, running costs may be the dominant factor since the purchase price gap is often smaller.

The bottom line for UK drivers

Electric cars running costs are lower than petrol for most UK drivers who can charge at home, particularly on off-peak tariffs. The cost per mile advantage is clearest for high-mileage drivers, company car users, and those with access to workplace charging. Public-charging-only drivers and very low-mileage motorists may find petrol or hybrid cars more economical overall.

The gap is narrowing as EVs lose tax exemptions and insurance premiums converge, but energy cost per mile remains the EV's strongest advantage. Model your own driving patterns honestly, get insurance quotes for specific cars, and use a calculator to compare before committing. The right choice depends on your mileage, charging access and how long you plan to keep the vehicle.