Analysis: EVs are now nine times cheaper than petrol or diesel to drive in the UK

The soaring costs of fossil fuels have made electric vehicles (EVs) in the UK nine times more affordable to operate compared to cars powered by gasoline or diesel, reveals a recent Carbon Brief analysis. Since the US launched an attack on Iran in February, the price of diesel surged by 38% to £1.96 per litre, according to government data, and could surpass £2 per litre following the attack on the Kapotnya oil refinery in Russia on September 20.

Russia, the second-largest diesel exporter globally, has experienced refinery disruptions nearly every three days since the beginning of 2026.

Similarly, petrol prices have risen by 31% since February to £1.72 per litre, with some regions reaching nearly £2 per litre, as reported by BBC News. These price hikes were triggered by oil prices soaring above $100 per barrel due to the intensifying conflict between Yemen’s Houthis and Saudi Arabia – a nearly 50% increase from June.

Based on the latest figures from the Department of Energy Security and Net Zero (DESNZ), driving a diesel car now costs about 21p per mile, while a petrol car costs roughly 20.1p per mile. In contrast, charging an EV with an off-peak tariff costs just 2.3p per mile, making it nine times cheaper than driving a petrol or diesel vehicle. Even if charged using electricity at the domestic price cap, the cost is around 7p per mile, three times cheaper than petrol or diesel.

The price cap is set to increase in October, but the majority of the rise will affect gas prices, with the unit rate of electricity likely to increase by less than 1% from 26.1p to 26.3p per unit. A more substantial 20% rise in electricity unit rates under the price cap is expected in January 2027, as higher gas costs trickle down to higher wholesale electricity prices.

Despite the higher running costs of petrol vehicles, they still dominate the UK's road fleet, accounting for 55% of all cars. Only 6% of the approximately 35 million cars on the road are fully electric battery EVs, with an additional 3% being plug-in hybrids capable of running on either fuel or electricity. However, EV sales are still on the rise, with around 30% of new cars sold in August being battery EVs, up from 26.5% in August 2025.

Carbon Brief's earlier analysis in June indicated that UK EV drivers were saving £1,100 annually in fuel costs compared to petrol car owners. Following the latest fuel price hikes, these savings would now amount to £1,200 per year. Compared to the average pump prices of £1.72 per litre for petrol or £1.96 per litre for diesel, the cost of equivalent amounts of electricity using an off-peak tariff is as low as 20p – approximately nine times cheaper than petrol.