Are Electric Cars Cheaper to Run? UK 2026 Costs
EV Charger Guidance • Page 3

Are Electric Cars
Cheaper to Run?

On home electricity, a UK EV costs roughly 2 to 4p per mile to charge against 15 to 18p per mile for an equivalent petrol car. Servicing is cheaper too. Once you add in road tax, fuel duty and the maintenance gap, the running cost case for EVs is clear.

Authored by: NAPIT Approved Engineers
Reviewed: April 2026
Coverage: Bedford, Milton Keynes, Northampton, Luton
Quick answer

Yes. A UK EV charged at home on a standard tariff costs around 7 to 8p per mile in electricity. On an off-peak EV tariff like Octopus Go that drops to 2 to 3p per mile. A typical petrol hatchback costs 15 to 18p per mile in fuel. Servicing is also significantly cheaper because EVs have fewer moving parts. Total annual savings for the average UK driver run to £900 to £1,500.

2p/mi

Off-Peak Charging Cost

Charging on Octopus Go or similar overnight tariffs at 7.5p per kWh works out to around 2p per mile for a typical EV.

16p/mi

Petrol Cost Per Mile

Typical UK petrol hatchback at 45 mpg with petrol around £1.45 per litre costs around 16p per mile in fuel alone.

60% less

Servicing Cost

EV annual servicing typically runs 50 to 60 percent less than petrol equivalents thanks to fewer moving parts and no oil changes.

£1.2k/yr

Typical Annual Saving

Average UK driver doing 8,000 miles saves around £900 to £1,500 per year switching from petrol to EV (excludes purchase price gap).

How EV running costs compare to petrol

The headline saving in EV ownership comes from the cost of energy. UK electricity from a home wall socket costs around 25p per kWh on a standard tariff. Off-peak EV tariffs (Octopus Go, Intelligent Octopus, OVO Charge Anytime) drop the overnight rate to as low as 7.5p per kWh. A typical EV uses around 3.5 to 4 miles per kWh in real world driving.

Do the maths and that means standard tariff charging works out to around 6 to 7p per mile. Off-peak charging works out to around 2p per mile. A petrol hatchback at 45 mpg burning £1.45 per litre fuel costs 16p per mile. The difference is significant.

Public charging is more expensive

The picture changes if you cannot charge at home. UK public rapid chargers cost 60 to 80p per kWh which works out to around 16 to 22p per mile. That is similar to or slightly above petrol cost. The UK EV cost case relies heavily on home charging being available. Drivers without driveways need to weigh this carefully.

Servicing savings

EV servicing is genuinely cheaper because there is less to service. No oil and filter changes. No spark plugs. No timing belts. No exhaust system. Brake pads last 2 to 3 times longer thanks to regenerative braking. The main service items on an EV are tyres, cabin filter, brake fluid every couple of years and battery coolant flushes at longer intervals.

Most EV manufacturers quote service costs around 40 to 60 percent below petrol equivalents over the first 5 years of ownership. Tesla and several others have moved to condition-based servicing rather than fixed annual intervals.

Road tax and incidentals

From April 2025 EVs pay standard rate VED at £190 per year. EVs costing over £40,000 also pay the expensive car supplement. ULEZ and most clean air zones still exempt EVs. Many UK employers still offer salary sacrifice schemes that further cut the cost of a company-car EV. Some local authorities also offer free or discounted parking for EVs.

Authoritative context

Comparative running cost data published by the AA, RAC and the Energy Saving Trust consistently shows electric vehicles operating at significantly lower per-mile costs than petrol equivalents on UK roads. The savings depend heavily on home charging availability and tariff choice. Drivers reliant on public rapid charging see substantially smaller savings. Salary sacrifice schemes regulated by HMRC continue to be one of the most cost-effective routes to EV ownership for higher-rate UK taxpayers.

Cost per mile comparison (UK 2026)

EV on off-peak tariff (7.5p/kWh)
Octopus Go, Intelligent Octopus or OVO Charge Anytime overnight rate.
~2p/mi
EV on standard tariff (25p/kWh)
Charging at home during peak hours on a standard variable tariff.
~7p/mi
Petrol hatchback (45 mpg, £1.45/L)
Typical UK family hatchback fuel cost on average UK pump prices.
~16p/mi

How EV running cost stacks up over a year

1

Energy cost (8,000 mi/year)

EV on off-peak tariff: around £160. EV on standard tariff: around £560. Petrol equivalent: around £1,280.

2

Servicing (annual)

EV typical annual service: £80 to £150. Petrol equivalent: £200 to £350. Savings of £100+ per year.

3

Road tax (VED)

From April 2025 EVs pay £190 standard VED. Petrol cars pay similar or slightly more depending on emissions band.

4

Total annual saving

Off-peak charging EV vs petrol hatchback: roughly £900 to £1,500 per year for average UK mileage.

Where EV running cost wins and loses

Wins on home charging

Off-peak overnight charging is the killer feature. Tariffs as low as 7.5p per kWh make per-mile cost a third of petrol.

Wins on servicing

No oil changes, no spark plugs, no timing belts. Fewer wear items means lower routine service costs across ownership.

Wins on brakes

Regenerative braking does most of the slowing. Brake pads and discs last 2 to 3 times longer than petrol equivalents.

Loses on public charging

UK public rapid chargers at 60 to 80p per kWh cost similar to or above petrol per mile. Home charging access matters.

Petrol hatchback (45 mpg)

  • Fuel cost: 15 to 18p per mile
  • Annual fuel: £1,200 to £1,500
  • Annual service: £200 to £350
  • Brake pads: every 25,000 to 35,000 mi
  • Oil and filters every 12,000 mi
  • Standard VED rate

Equivalent UK EV

  • Energy cost: 2 to 7p per mile
  • Annual electricity: £160 to £560
  • Annual service: £80 to £150
  • Brake pads: every 60,000 to 80,000 mi
  • No oil or spark plugs
  • Standard VED from April 2025

Running cost is one piece of the EV decision. The full EV Charger Guidance hub covers home charger install, battery longevity, the buying decision and the practical questions that go alongside the financial side.

Frequently asked

Common questions

How much do EVs cost to charge per mile in the UK?
On a standard variable electricity tariff at 25p per kWh, a typical UK EV costs around 7p per mile to charge at home. On an off-peak EV tariff like Octopus Go at 7.5p per kWh, that drops to around 2p per mile. Public rapid chargers at 60 to 80p per kWh push the cost up to 16 to 22p per mile, similar to or slightly above petrol.
Do EVs really need less servicing than petrol cars?
Yes, significantly less. Electric drivetrains have far fewer moving parts than internal combustion engines. No oil and filter changes, no spark plugs, no timing belts, no exhaust system, no clutch on automatic models. Brake pads last 2 to 3 times longer thanks to regenerative braking. Annual service costs typically run 40 to 60 percent below petrol equivalents.
What about EV insurance premiums?
EV insurance currently runs around 15 to 30 percent higher than petrol equivalents because of higher repair costs (battery damage in minor crashes is expensive) and limited long-term claims data. Premiums are coming down as the market matures. Specialist EV insurers like LV and EV Underwriting offer competitive rates. The insurance gap usually does not eliminate the running cost saving but it does reduce it.
Can I really save £1,000+ per year switching to an EV?
For an average UK driver doing 8,000 miles per year and charging at home on an off-peak tariff, yes. The fuel cost difference alone is around £1,000 per year. Servicing savings add another £100 to £200. Road tax was a saving but EVs now pay full VED from April 2025. Overall annual saving sits in the £900 to £1,500 range for typical drivers.
What if I cannot charge at home?
Without home charging the running cost case weakens significantly. UK public rapid chargers cost 60 to 80p per kWh, which works out to similar or higher per-mile cost than petrol. Some workplaces offer free or low-cost charging which restores the saving. Slow public chargers (often free or under 30p per kWh) work for some drivers. Run the actual numbers for your charging pattern before committing.

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