StreetOwl · The economics of…

The economics of… owning an EV vs petrol or diesel

Edition 1 · 22 July 2026 · figures as dated below · next review April 2027 or on any trigger listed at the end

The four prices of a mile

Mid-2026, a mile costs roughly: 2p in an EV charged overnight on an EV tariff (~7p/kWh) · 7.5p in an EV at the standard electricity cap (26.11p/kWh, Jul–Sep 2026) · 17p in a 40 mpg petrol car at the current pump average (~152p/litre) · 23p in an EV using public rapid chargers (~80p/kWh). The spread inside "an EV" is wider than the gap between EV and petrol — which is why where you charge decides everything.

Four drivers, one year of fuel

Low-miler, 4,000 mi, home charger: petrol ~£690 · EV overnight ~£80 → saves ~£610/yr
Commuter, 12,000 mi, home charger: petrol ~£2,080 · EV overnight ~£240 → saves ~£1,840/yr
No driveway, 8,000 mi, rapid-heavy: petrol ~£1,385 · EV public ~£1,840 → EV costs ~£455 more
High-miler, 20,000 mi, home charger: petrol ~£3,460 · EV overnight ~£400 → saves ~£3,060/yr

The premium, and when it repays

A like-for-like new EV still typically costs several thousand pounds more to buy. At the commuter's ~£1,840/yr fuel saving, a £4–6k premium repays in two to four years; at the low-miler's ~£610/yr it may take most of a decade on fuel alone. The used market changes this: used EV values fell sharply in 2023–25, so second-hand EVs now sit near price parity — for a used buyer with a driveway, the premium question largely disappears.

What still works in petrol's favour

No need for a driveway or charger install. Public rapid charging carries 20% VAT against 5% at home, and at ~80p/kWh a rapid-charged EV mile is dearer than a petrol one — for households who can't charge at home, petrol is often simply cheaper. Add faster refuelling on long trips, generally lower insurance quotes (the EV gap is narrowing but real), and a deeper used-market choice.

What works in the EV's favour beyond fuel

Servicing typically runs lower (fewer moving parts, less brake wear). VED is now equal — EVs have paid road tax since April 2025, so that old advantage is gone, but no penalty either. Clean Air Zone fees depend on where you drive, not what you own outright: EVs enter every charging zone free, while an older petrol or diesel can pay daily in Birmingham, Bristol, Sheffield or London's ULEZ. If your driving touches a charging zone, add that to the petrol column — many areas, including some large city regions, chose investment-led plans with no driver charge at all.

Already-dated changes that will move these numbers

The fuel-duty freeze and 5p cut run only to September 2026 — pump prices may rise after. From April 2028 EVs pay 3p per mile (hybrids 1.5p): about £300/yr for the commuter, which narrows the home-charging gap but doesn't close it — and pushes the no-driveway case further towards petrol. The electricity cap resets quarterly. Any of these triggers a revisit of this edition.