Electric vs Petrol Running Costs UK 2026: Which Is Cheaper?

Key takeaway: An electric car costs 5p to 8p per mile to run on home charging, compared to 14p to 18p per mile for petrol. But higher insurance premiums, new road tax charges (from April 2025), and faster depreciation mean the total cost picture is more nuanced than "electric is always cheaper." The break-even point depends heavily on your mileage, charging access, and which specific cars you compare.

The electric vs petrol debate has changed significantly in 2026. Electric vehicles now pay road tax (£200/year), insurance premiums for EVs are usually higher than for equivalent petrol cars, and public charging can be expensive. At the same time, home electricity prices have stabilised, and the used EV market is maturing with more affordable options.

In this guide, we compare like-for-like electric and petrol cars across every cost category, using real UK data. No manufacturer claims, no cherry-picked scenarios. If you want to check the running costs for any specific vehicle, enter the registration number in our free tool for a personalised breakdown.

Cost Category 1: Fuel / Energy

This is where EVs shine brightest. The cost per mile depends on how and where you charge:

Electricity Costs

Charging Method	Cost per kWh	Cost per Mile (avg EV)
Home (standard tariff)	24p-28p	6p-8p
Home (overnight/EV tariff)	7p-12p	2p-4p
Workplace (free)	0p	0p
Public slow (7-22kW)	35p-55p	10p-16p
Public rapid (50kW+)	65p-85p	18p-24p

Petrol Costs

Car	Real-World MPG	Cost per Mile
Vauxhall Corsa 1.2T	46-52	12p-14p
VW Golf 1.5 TSI	42-48	13p-15p
Hyundai Kona 1.6T	38-44	14p-17p
BMW 320i	38-42	15p-17p

Annual Fuel/Energy Cost (8,000 miles)

Comparison	Electric (Home Charging)	Petrol	Annual Saving (EV)
Corsa-e vs Corsa 1.2T	£480-£640	£960-£1,120	£400-£560
MG4 vs Golf 1.5 TSI	£500-£660	£1,040-£1,200	£460-£620
Kona Electric vs Kona 1.6T	£520-£680	£1,120-£1,360	£520-£760
Model 3 vs 320i	£440-£580	£1,200-£1,360	£680-£840

On home charging, EVs save £400 to £840 per year in fuel costs. However, if you rely entirely on public rapid chargers, the saving shrinks to £0 to £200 per year, and in some cases the EV actually costs more per mile.

Cost Category 2: Insurance

Insurance is where EVs consistently lose ground:

Comparison	EV Insurance Group	Petrol Insurance Group	Annual Premium Difference
Corsa-e vs Corsa 1.2T	21-28	6-10	£300-£500 more for EV
MG4 vs Golf 1.5 TSI	22-26	14-18	£200-£350 more for EV
Kona Electric vs Kona 1.6T	24-30	16-20	£250-£400 more for EV
Model 3 vs 320i	30-38	24-28	£300-£500 more for EV

Higher insurance for EVs is driven by expensive battery repairs, limited specialist repair facilities, and higher new car values. For a driver in their 30s with 5 years NCB, the difference is typically £200 to £400 per year. For a younger driver, it can be £500+.

Cost Category 3: Road Tax (VED)

Since April 2025, EVs pay the standard VED rate of £200/year (previously £0). For detailed rates, see our car tax changes guide.

Comparison	EV Road Tax	Petrol Road Tax
Standard models (post-2017)	£200/year	£200/year
Expensive car supplement (5 years)	£640/year if list price over £50,000 and registered from 1 April 2025	£640/year if list price over £40,000

The standard rate is now the same for both. The difference is the expensive car supplement: for electric cars it applies only to cars registered from 1 April 2025 with a list price over £50,000, against £40,000 for petrol cars. Where it applies, you pay £640 a year in total for five years, from the second year.

Cost Category 4: Maintenance and Servicing

EVs have fewer moving parts and generally cost less to service:

Service Item	Electric	Petrol
Annual service	£100-£200	£180-£350
Brake pads (per axle)	Last 80,000-100,000 miles (regen braking)	Last 25,000-40,000 miles
Oil changes	None required	£80-£150 per change
Timing belt	None	£300-£600 (every 60-100k miles)
Exhaust system	None	£150-£600 (catalytic converter, DPF)
Coolant system	Simpler (battery cooling)	More complex (engine + radiator)

Over a typical 3-year ownership period, servicing and maintenance costs for an EV are roughly £500 to £1,000 less than a comparable petrol car. However, if the EV battery needs replacement outside warranty (unlikely but possible), costs range from £5,000 to £15,000 depending on the car. Maintenance is not the whole reliability story: in 2025, 13.4% of electric cars failed their first MOT against 10.3% of petrol cars, as our electric car MOT failure rates analysis shows.

Cost Category 5: MOT

EVs still require an annual MOT from the age of 3 years. The test fee is the same (£54.85 maximum). EVs have no exhaust emissions to test, which removes one common cause of failure.

Cost Category 6: Depreciation

Depreciation is the largest single cost of car ownership, and the picture is mixed for EVs:

Comparison	EV Value Retained (3 years)	Petrol Value Retained (3 years)
Corsa-e vs Corsa 1.2T	40-45%	48-53%
MG4 vs Golf 1.5 TSI	38-43%	50-55%
Kona Electric vs Kona 1.6T	42-47%	48-53%
Tesla Model 3 vs BMW 320i	55-60%	48-52%

Most EVs depreciate faster than equivalent petrol cars because battery technology evolves rapidly (making older EVs less desirable) and new EV prices keep falling as manufacturers compete for market share. Tesla is the notable exception: strong brand demand and OTA software updates help Teslas hold their value better than most.

Total Cost of Ownership: 3-Year Comparison

Cost (3 years, 8,000 miles/yr)	Corsa-e	Corsa 1.2T	Model 3	BMW 320i
Purchase price	£30,000	£22,000	£42,000	£38,000
Depreciation (3yr)	£16,500	£10,340	£17,640	£19,000
Fuel/energy	£1,680	£3,120	£1,530	£3,840
Insurance	£2,400	£1,350	£3,600	£2,400
Road tax (£200 standard rate)	£600	£600	£600	£600
Servicing + MOT	£600	£1,200	£750	£1,500
Total 3-year cost	£21,780	£16,610	£24,120	£27,340

Key findings:

• Corsa-e vs Corsa 1.2T: The petrol Corsa is £5,170 cheaper over 3 years, mainly because of the £8,000 purchase price difference and faster EV depreciation. The fuel savings (£1,440) and maintenance savings (£600) are not enough to close the gap.
• Tesla Model 3 vs BMW 320i: The Tesla is £3,220 cheaper over 3 years. Despite costing £4,000 more to buy, the Tesla's slower depreciation, much lower fuel costs, and cheaper servicing swing the numbers in its favour. This is one of the few EV comparisons where the electric option genuinely saves money.

When Does an EV Make Financial Sense?

An EV is likely to save you money if:

• You can charge at home, ideally on an overnight tariff (7p to 12p/kWh)
• You drive 12,000+ miles per year (higher mileage = more fuel savings)
• You plan to keep the car for 4+ years (amortises the purchase premium)
• You are comparing against a premium petrol car (BMW, Mercedes, Audi) where the EV alternative depreciates more slowly
• You can get a company car (the company car tax rate for electric cars is 4% in 2026 to 2027, far lower than for petrol cars)

An EV is unlikely to save you money if:

• You rely on public rapid chargers for most of your charging
• You drive fewer than 6,000 miles per year
• You are comparing against a very efficient petrol hybrid (Toyota Yaris Hybrid, Honda Jazz)
• You change cars every 1 to 2 years
• You are buying in the small car segment where the purchase price gap is proportionally largest

Check Any Car's Costs

Whether you are leaning towards electric or petrol, the specific car matters more than the fuel type. A well-chosen petrol car can be cheaper than a poorly-chosen EV, and vice versa. Our free car check tool works for all fuel types. Enter any registration number to see road tax, fuel costs, MOT history, and predicted annual running costs. It gives you the real numbers for your exact car, not generic estimates.