Is it cheaper to run an electric vehicle or a petrol car?

Yahoo

01-07-2025

More people are buying electric vehicles (EVs) than ever before, but the pace of change needs to pick up even further.
That's according to the UK's Climate Change Committee (CCC), which advises the government on its net zero emissions targets and said last week that the UK must increase its focus on making electricity cheaper to reduce its reliance on fossil fuels.
The number of electric cars on UK roads has nearly doubled in the past two years, and nearly one in five new cars sold in 2024 was electric, the chief executive of the CCC told the BBC last week.
But that will only pick up even further when falling prices and the cost of running an EV tumble even further, and consumers switch away from petrol engines because it's cheaper to do so. The CCC said that falling electricity prices are critical to making this happen.
So, when will road users be better off if they decide to buy an electric vehicle? We asked a number of experts.
Taking a wide range of expenses - such as fuel costs, maintenance, depreciation and tax - into account, some EVs can already be cheaper to run than some petrol and diesel cars in the UK.
For example, a typical EV (charged during off-peak hours) can travel 50 miles on £1 of electricity – six times further than £1 of petrol will take you, Matt Walters, an EVs expert at fleet management company Ayvens, told Yahoo News.
'Our 2025 Car Cost Index shows that when you look at the full picture – including everything from fuel and maintenance to depreciation and tax – battery electric vehicles (BEVs) are cheaper to run than petrol and diesel cars in the UK," Walters said.
'For example, the total cost of operation (TCO) for a battery electric vehicle comes in at around £982 per month. That's noticeably lower than a petrol car at £1,112 or a diesel at £1,103.
"So, while electric cars have higher upfront prices, many have a lower total cost of ownership than their petrol equivalents, making them the cheaper alternative in the long run.'
Manufacturers are driving their prices down, thanks not only to government policy but to an influx of cheaper parts.
Figures from BloombergNEF show that battery pack prices have fallen markedly in the past decade - from $806 per kw/hr in 2014 to $115 in 2024. And they are expected to drop even further in the coming years..
'Since the battery is the most expensive part of an EV, falling prices are a key driver in reducing overall vehicle costs, making electric cars more affordable to buy," Walters explains.
'Manufacturers are also starting to match the prices of petrol and hybrid models, with cars like the new Vauxhall Frontera launching below £20,000.'
In fact, the CCC predicts that prices for new EVs and petrol cars will reach parity in around two years.
Consumers are increasingly buying second-hand EVs, which are already close to drawing even with their petrol vehicles.
Demand is booming, according to the Society of Motor Manufacturers and Traders (SMMT), having risen 58.5% to 65,850 units and a record 3.3% share of all transactions in 2025.
Data from car sales site Motorway show that the average prices for EVs and petrol cars sold via the platform (where dealers buy from consumers) are starting to draw very close to each other.
'Used EV prices have continued to soften over recent months. The average sale price for used EVs on our platform has decreased by 10% year on year, from £18,411 in May 2024 to £16,464 in May 2025. This reflects an increase in supply, which, despite strong consumer appetite, is still outpacing demand," Motorway told Yahoo News in a statement.
New regulations (Euro 7) will mean all new EVs will have to show battery health, which should mean that people have more confidence in second-hand purchases.
"The decline is closing the affordability gap with petrol cars on the second-hand market, making EVs more accessible to a wider range of motorists," Motorway added. "Just a year ago, buyers faced a significant premium to go electric, which posed a serious barrier to adoption. Now, for the majority of consumers who have never bought a brand-new car, their first EV purchase could come from a used-car dealership.'
Experts at Webuyanycar believe that electrified cars will make up more than half of new registrations next year.
Electrified cars have made steady year-on-year gains, according to Richard Evans, head of technical services at Webuyanycar.
"The 2025 and 2026 outlooks signal not just continued electrification, but a maturing market. HEVs [hybrid electric vehicle] and PHEVs [plug-in hybrid electric vehicle] will remain vital stepping stones to all-electric motoring, while petrol and diesel registrations continue to retreat," said Evans.
According to Evans, growth across the BEV, PHEV, and HEV segments makes it clear that electric motoring is no longer confined to early adopters.
In addition, consumers now benefit from a choice of more than 130 EV models, improved range, better battery technology, and a continuously growing public charger network.
"While affordability remains a barrier for some, the arrival of budget-friendly EVs such as the Dacia Spring and Leapmotor 03 (which are approaching price parity with the cheapest ICE cars) could help to unlock the mass market," he says.