Electric vehicles are £525 cheaper to run than petrol despite 2025 car tax changes
New research has found that electric vehicles are on average £525 cheaper to run over the course of a year than petrol cars.
The falling cost of energy means electric cars are cheaper for drivers aged between 45 and 54 years old, new data has revealed.
Based on average prices of insurance, fuel and road taxes, electric vehicles cost an average of £1,195 to run, compared to £1,720 for a petrol car.
Electric car owners have seen a huge difference in running costs since last year, with the difference between EVs and petrol cars in 2023 at just £357.
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Electric vehicles do not have to pay car tax until next April
PA
Drivers have dealt with enormous price increases in the cost of car insurance, with young drivers being quoted an average of £3,000 for coverage.
Compare the Market found that the cost of insurance has risen by £139 for electric car owners, although petrol premiums rose by £157 for those between 45 and 54 years old.
Julie Daniels, motor insurance expert at Compare the Market, said there were several options available to drivers who wanted to make the switch and the benefits they would see once they do.
She said: “Motorists who’ve switched to an electric vehicle will be glad to see they can be substantially cheaper to run than petrol cars.
“As well as helping the environment, electric vehicle owners currently benefit from fuel and tax savings.
“However, the significant upfront cost of buying an electric car and installing a home charging point will prevent many drivers from being able to afford this option.”
Electric car owners are also benefitting from energy price cuts, allowing people to charge at home from as little as £400 on average, compared to £930 for petrol.
According to RAC Fuel Watch, the average price of petrol has fallen in recent weeks to 149.74p per litre, compared to 157.06p for a litre of diesel.
Motorists are consistently urged to fill up before they embark on long journeys so they can avoid having to visit motorway service stations where prices are over 20p more expensive than regular filling stations.
Daniels added: “The rising cost of car insurance for electric vehicles and higher road taxes from 2025 may also make switching less attractive to some motorists.
“One of the best ways to try and save money on your car insurance is by comparing prices ahead of renewal.”
However, electric vehicle drivers will see their costs increase next year when Vehicle Excise Duty rates will apply to EVs, following a Government announcement in 2022.
There are more than 61,000 electric chargers around the UK
GETTY
While they will pay the lowest rate of car tax from next year, the added costs may lead to price parity between EV owners and those with petrol cars.
