Electric vs Petrol Running Costs in the UK: The Real Numbers for 2026

The headline number is simple: charging an EV at home costs around 7p per mile on a standard tariff, or as little as 2p per mile on a smart tariff. Petrol costs around 16p per mile. But running costs are not just fuel — they include road tax, servicing, insurance, tyres, and depreciation.

In 2026, the picture has shifted. EVs now pay road tax. Insurance premiums for EVs remain higher. Depreciation on some EV models has been steep. So is an electric car still cheaper to run overall?

This article breaks down every major running cost category with real 2026 UK figures, then puts it all together in a total annual cost comparison.

1. Fuel and Electricity Cost per Mile

This is where EVs have their biggest advantage. The cost per mile for electricity is a fraction of what petrol or diesel costs — especially if you charge at home on an off-peak tariff.

The key takeaway: home charging on a smart tariff is 8x cheaper than petrol per mile. Even on a standard electricity tariff, an EV costs less than half of what petrol costs. Public rapid charging, however, can be as expensive as petrol — so home charging is where the real savings happen.

2. Road Tax (Vehicle Excise Duty)

Until April 2025, electric cars paid zero road tax. That advantage is now gone.

The road tax gap has closed to zero. From year 2 onwards, all vehicles pay the same £190 per year standard rate regardless of fuel type. The only difference is in the first year, where EVs pay a lower £10 first-year rate.

Watch out for the Expensive Car Supplement: any car with a list price over £40,000 (when new) pays an additional £410 per year for five years. Many popular EVs — Tesla Model 3, BMW iX1, Polestar 2 — had original list prices above this threshold.

3. Servicing Costs

EVs have far fewer moving parts than petrol cars. No engine oil, no spark plugs, no exhaust system, no clutch, no timing belt. This translates directly to lower servicing bills.

EVs also benefit from regenerative braking, which recovers energy when you slow down and puts far less wear on the brake pads. Many EV owners report their original brake pads lasting the lifetime of the car.

4. Insurance Costs

This is where EVs lose ground. Insurance premiums for electric cars are consistently higher than their petrol equivalents — typically 15–25% more.

Why EV insurance costs more:

• Higher repair costs — Even minor bumps can damage expensive battery packs, and battery repairs often mean full replacement (£5,000–£15,000+)
• Specialist technicians required — Not all garages are qualified to work on high-voltage EV systems, limiting competition
• Higher vehicle values — EVs tend to cost more than equivalent petrol models, increasing the insurer’s exposure
• Fewer approved repair centres — Longer wait times for repairs mean higher courtesy car costs for insurers

The gap is narrowing as more garages become EV-certified and insurers gain more data on EV claims, but it remains a meaningful extra cost in 2026.

5. Tyre Costs

This is an often-overlooked running cost where EVs are more expensive. Electric cars are heavier than equivalent petrol models (due to the battery pack) and deliver instant torque, both of which increase tyre wear.

EV-specific tyres are designed with lower rolling resistance (to maximise range) and reinforced sidewalls (to handle the extra weight). Using standard tyres on an EV is possible but may reduce range by 5–10% and wear faster.

6. Depreciation

Depreciation is the largest single cost of car ownership, and this is where the EV vs petrol debate gets complicated.

EVs are currently depreciating faster than petrol cars in most cases. This is driven by rapid technology improvements making older EVs less attractive, battery range anxiety in the used market, and a growing supply of used EVs as early adopters trade up.

However, this picture is stabilising. Popular models with strong brand recognition (Tesla Model 3, Hyundai Ioniq 5) are holding their value better. And buying a used EV sidesteps the worst of the depreciation — someone else has already absorbed the first-year hit.

7. ULEZ and Congestion Charge

If you drive in London or other Clean Air Zones, EVs still have a significant advantage.

For London commuters, congestion charge exemption alone saves £15 per day or £3,750 per year (assuming 250 working days). This single benefit can outweigh every other running cost difference combined.

Important note: The London Congestion Charge Cleaner Vehicle Discount for EVs was originally set to end in December 2025. Check the TfL website for the current status, as policies may have changed.

8. Total Annual Cost of Ownership Comparison

Let’s put it all together. Here is the full annual running cost comparison for a typical UK driver doing 7,000 miles per year, based on 2026 figures.

The headline finding: When you include depreciation, EVs and petrol cars are roughly equal in total cost for a new car buyer in 2026. The EV’s massive fuel savings are offset by higher insurance, tyres, and depreciation.

But exclude depreciation (which is what matters if you plan to keep the car long-term, or if you buy used), and the EV saves nearly £1,000 per year in running costs.

The hybrid is the surprise winner on total cost if you buy new — lower depreciation, petrol-level insurance, and decent fuel economy make it the cheapest option overall for a new purchase in 2026.

Worked Example: 3-Year Cost of Ownership

Rachel from Birmingham is choosing between a 2023 VW ID.3 Pro (electric, £18,000 used) and a 2023 VW Golf 1.5 TSI (petrol, £17,000 used). She drives 8,000 miles per year and charges at home on Intelligent Octopus Go.

Figures are illustrative estimates based on April 2026 rates. Actual costs vary by driving style, location, insurance profile, and market conditions.

Final Thoughts

The EV vs petrol running cost question in 2026 is more nuanced than the simple headlines suggest. EVs are dramatically cheaper on fuel and servicing, but more expensive on insurance, tyres, and (for new cars) depreciation. Road tax is now identical.

For most drivers who can charge at home and plan to keep the car for several years, an EV is still the cheaper option — saving roughly £700–£1,000 per year in running costs (excluding depreciation). For London drivers, the congestion charge exemption makes it a clear winner.

The sweet spot in 2026 is buying a used EV that is 2–3 years old. You avoid the worst depreciation, benefit from cheap home charging, and pay less for servicing. The economics become overwhelmingly in favour of electric once someone else has absorbed the new-car depreciation hit.

Prices, tax rates, and tariffs are based on publicly available figures as of April 2026 and are subject to change. Always check current rates with your insurer, energy supplier, and GOV.UK for the latest VED rates.

Related reading: Home EV Charging UK Guide | Best Used EVs Under £15,000