EV vs Petrol: True Cost of Ownership Compared

Cost by cost

Fuel and charging. The biggest gap, and it swings entirely on where you charge. Home off-peak charging works out at roughly 2p to 3p a mile, home standard tariff around 7p to 8p, public rapid charging around 23p to 24p. A petrol car typically runs at 15p to 23p a mile. So home charging is transformative and public rapid charging is roughly a wash.

Servicing. EV around £165 a year, petrol around £205 to £300. Add in what disappears entirely, no oil changes, no cambelt, no exhaust, no clutch, and the long-term gap widens beyond the annual service figure.

Brakes. EV pads often last 60,000 to 80,000 miles against 30,000 to 40,000 on petrol, thanks to regenerative braking.

Tyres. This one goes the other way. EVs wear tyres roughly 20% to 30% faster and tend to run larger, more expensive sizes. Fleet data has put the average EV replacement tyre at around £207 against £130 for petrol and diesel.

Insurance. Also against the EV. Premiums run around 10% to 15% higher, though that gap has narrowed from roughly 25% in 2024 and varies enormously by model.

Road tax. Broadly level now. EVs lost their VED exemption in April 2025, and cars with a list price above £40,000 attract the Expensive Car Supplement in years two to six, which catches out buyers of higher-spec EVs.

Company car tax. Where the EV wins overwhelmingly. Benefit in Kind sits at 4% for fully electric cars in 2026/27, against up to 37% for high-emission petrol. For company car drivers this single line item dwarfs everything else on the page.

Depreciation. The largest cost for anyone buying new, and historically worse for EVs. Used EV values fell around 10% year on year into 2026, with average three year depreciation around 38% to 42%.

Two worked scenarios

Scenario one: home charging, 10,000 miles a year, bought used

The EV wins comfortably. Fuel savings of several hundred pounds a year, lower servicing, similar tax, slightly higher insurance and tyre costs. Depreciation is far less punishing because the first owner absorbed the steep part. Net saving typically £500 to £1,100 a year against a comparable petrol car.

Scenario two: no home charging, 15,000 miles a year including regular long trips, bought new

Much closer, and potentially worse. Public rapid charging at around 23p a mile removes the fuel advantage entirely. Higher purchase price and steeper depreciation dominate. Insurance and tyres cost more. Unless you're a company car driver taking advantage of the BiK rate, the petrol car may well work out cheaper.

The gap between those two scenarios is the honest answer to "is an EV cheaper", and it's why blanket claims in either direction are unhelpful.

The cost nobody mentions

Depreciation is the biggest number in this whole comparison, and on an EV it's now driven by something you can measure.

Battery State of Health has overtaken mileage as the primary factor in used EV pricing. Two identical cars, same age, same miles, can be worth meaningfully different amounts because one has been charged carefully and the other hasn't.

That cuts both ways. As a buyer it means the battery figure is your negotiating position. As an owner it means your charging habits are quietly setting your future resale price. See how battery health affects resale value.

Where the EV case is strongest

1. Company car drivers. The BiK gap is so large it overwhelms everything else.
2. Home charging plus decent mileage. The more miles on cheap electricity, the better.
3. Buying used. Let someone else take the depreciation.
4. Long ownership. Fewer wear items means the savings keep accruing.

Where petrol still has an argument

1. No home charging with high mileage. Public charging removes the advantage.
2. Regular towing. Range drops sharply and not all EVs are rated for it.
3. Very cheap end of the used market. Petrol still offers more car per pound below a certain price, though the gap is narrowing.
4. Very low annual mileage. If you barely drive, the running cost saving never accumulates enough to offset a higher purchase price.