Whether you’re already driving electric or are making your first investigations, understanding the real-world running costs of an electric vehicle (EV) compared to a petrol or diesel car can help you make informed decisions and maximise your savings.
Upfront prices for electric cars still tend to be higher than their internal combustion engine (ICE) equivalents, but the day-to-day cost of keeping the car on the road can be very different.
EVs offer compelling savings in terms of fuelling and maintenance, particularly if you can take advantage of cheaper home charging. In this article, we break down these costs so you can see how EV ownership compares to petrol and diesel in the real world.
In this article:
Electricity costs vs. petrol and diesel
A key reason EVs cost less to run is that electricity usually costs far less per mile than petrol or diesel. UK cost comparisons show that charging an EV at home can be significantly cheaper than buying petrol or diesel for the same driving distance. For example, using overnight home charging rates, the cost per mile is about half that of a diesel car, and even lower when compared to a petrol car.
As you can see, exact costs depend on how you charge your EV. Overnight home charging using an off-peak smart tariff can be especially economical. Charging at public chargepoints is usually more expensive than home charging, but still generally cheaper than filling up a tank. Subscription plans for public chargers are an increasingly popular option, bringing down the cost for drivers who rack up a lot of miles away from home or for people without access to a home charger.
Ultimately, putting a number on the savings you could make is incredibly tricky as it depends on so many factors, including energy tariffs, driving habits, fuel prices, battery types, fuel types, engine efficiency and so on.
What we can say is that across a wide range of usage scenarios, studies have found that filling up on fuel is anywhere between 80% and 50% more expensive than recharging an EV. On average, EV drivers save hundreds of – and in some cases over a thousand – pounds on energy costs each year compared with ICE car owners.
EV maintenance and servicing costs
The other big cost-saving factor with electric vehicles is that they have far fewer mechanical parts compared to petrol or diesel cars. Fewer moving parts means fewer things that can wear out or fail, which translates into lower servicing and maintenance costs over the life of the vehicle. That means no oil changes, no replacing spark plugs, no worn belts or complex exhaust and fuel systems to investigate if things go wrong. And because electric cars use regenerative braking, you’ll experience less wear on brake pads.
In fact, independent estimates suggest EV maintenance costs can be around half those of petrol cars, even when routine checks and wear-related servicing are factored in.
Industry data also indicates that most electric car owners are satisfied with the reliability of their vehicles – a satisfaction supported by Smart Rescue reports that electric cars are 59% less likely to require breakdown assistance compared to cars with an engine.
Other ownership costs and savings
Insurance costs for electric cars tend to be higher than for their petrol or diesel equivalents – a result of EVs having higher purchase prices and the relative newness of their technology, which assumes higher repair costs if damage occurs. However, as EVs become more common and repair costs fall, insurance premiums are falling in line with their ICE counterparts.
- Road tax
Electric cars did, until April 2025, benefit from zero road tax (vehicle excise duty) compared with high-emission petrol and diesel cars. Post-2025, newly registered electric vehicles pay £10 in the first year, then a £195 standard rate thereafter. EVs with a list price over £40,000 also pay an ‘expensive car supplement’ of £425 per year in years two to six of ownership. - Company car tax
For company car drivers the tax advantages for EVs are significant, with electric cars attracting a benefit-in-kind tax rate of just 3% in 2025/26, compared to a tax on non-electric cars of 37% – a 34% reduction in a driver’s annual benefit-in-kind tax bills! - ULEZ and congestion charges
In more and more UK cities, electric cars are exempt from Ultra Low Emission Zone (ULEZ) or congestion charges – savings that can be significant for city commuters, adding a further financial incentive to run an EV for those that regularly drive in urban environments.
Overall running cost comparison
Understanding running costs is central to assessing whether an electric car makes financial sense for your everyday life. While upfront purchase costs can be higher, the total cost of ownership over time often favours electric cars, particularly if you plan to keep your vehicle for several years.
In the UK, the maths is clear: EVs generally cost less to run than petrol or diesel cars when you consider:
- energy costs alone are often 65% less than the cost of petrol cars
- annual energy savings, even if fast-charging when needed, typically range from £600 to £1,500 compared with running a petrol car
- lower maintenance further reduces annual ownership costs
- company car tax and ULEZ exemptions further add to the financial benefit.
When all factors are considered, electric car drivers save an average of £1,200 per year on total running costs compared to petrol drivers. For many drivers, this means making the switch to electric is a wise long-term money-saving decision – while also supporting cleaner, quieter and more efficient transport.
