Electricity Prices vs Petrol Prices: What Is Really Cheaper for UK Drivers?

For UK drivers, the cost of running a car has become a major consideration. Petrol prices can change quickly, while electricity prices have also increased significantly in recent years. This raises an important question for anyone considering an electric vehicle (EV):

Is it really cheaper to charge an electric car than to fill a petrol car?

The short answer is usually yes  especially when charging at home. However, the actual saving depends on your car's efficiency, your electricity tariff and where you charge.

Comparing the Cost Per Mile

The fairest way to compare petrol and electricity is not simply to compare the price of a litre of petrol with the price of a kilowatt-hour of electricity. Instead, we need to calculate the cost per mile.

A typical petrol car might achieve around 40–50 miles per gallon, while many electric cars can travel approximately 3–4 miles per kWh, depending on the model, driving conditions and weather.

At the current average standard electricity price of around 26.11p per kWh, charging an EV at home can cost approximately:

3.5 miles per kWh × 26.11p = around 7.5p per mile

A petrol car achieving 45 miles per gallon may cost considerably more per mile, depending on the current price of petrol.

This is why the efficiency of the vehicle is so important. EVs convert a much larger proportion of the energy they use into movement, while petrol engines lose a significant amount of energy as heat.

Home Charging Is Where EV Savings Really Add Up

For most EV drivers, the biggest financial advantage comes from charging at home.

Instead of visiting a petrol station every few days, an EV owner can plug in after returning home and charge overnight. With a suitable home EV charger and a cheaper off-peak electricity tariff, the cost of charging can be significantly lower than the standard electricity rate.

For example, a 60kWh battery charged at 26.11p per kWh would cost approximately £15.67 for the electricity used, before considering charging losses.

At a cheaper overnight EV tariff, the same charge could cost substantially less.

This means that drivers who regularly charge at home can potentially reduce their everyday driving costs significantly compared with petrol.

Public Charging Can Change the Calculation

One of the biggest misconceptions about EV running costs is assuming that every type of charging costs the same.

It does not.

Home charging is generally the most cost-effective option. Public charging, particularly rapid motorway charging, can be considerably more expensive. Depending on the network and charger, the price per kWh may be much higher than a typical home electricity tariff.

For drivers who mostly use public rapid chargers, the financial advantage of driving electric can become smaller. In some situations, a highly efficient petrol car may have a similar cost per mile to an EV using expensive rapid charging.

This is why having a home charger can make such a significant difference for EV ownership.

A Simple Example: 10,000 Miles Per Year

Let's look at a simplified example.

Petrol Car

Assume:

• Fuel economy: 45 mpg

• Annual mileage: 10,000 miles

• Petrol price: approximately £1.40–£1.50 per litre

The annual fuel cost could be around £1,400–£1,600, depending on the exact fuel price and the vehicle's real-world efficiency.

Electric Car

Assume:

• Efficiency: 3.5 miles per kWh

• Annual mileage: 10,000 miles

• Home electricity price: 26.11p per kWh

The vehicle would need approximately 2,857kWh of electricity to travel 10,000 miles.

That would cost roughly £746 at the standard electricity rate, before charging losses.

With a cheaper off-peak EV tariff, the annual cost could be lower still.

This demonstrates why EV drivers who can charge at home often have the greatest potential savings.

What About the Rising Cost of Electricity?

Electricity prices are not fixed. The UK's energy price cap changes every three months, and rates can vary depending on location, payment method and tariff.

From 1 July to 30 September 2026, the average electricity unit rate under the price cap for Direct Debit customers is 26.11p per kWh, although individual tariffs can be higher or lower. The typical dual-fuel household price cap is £1,862 per year for this period.

This means EV drivers should not simply assume that electricity will always be cheap. Choosing the right tariff can make a significant difference to the overall cost of charging.

Petrol Prices Can Also Be Unpredictable

Petrol prices are influenced by global oil prices, exchange rates, taxes and international events. A sudden increase in oil prices can quickly increase the cost of filling up.

Electricity prices can also fluctuate, but EV drivers with access to a suitable fixed or off-peak tariff may have more control over when they charge and how much they pay.

Smart charging technology can help drivers automatically charge during cheaper periods, reducing the cost of everyday driving.

Which Is Cheaper: Petrol or Electricity?

For most drivers who can charge at home, electricity is generally cheaper per mile than petrol.

However, the biggest savings depend on several factors:

• How efficient your car is

• Your electricity tariff

• How much you charge at home

• How often you use public rapid chargers

• Your annual mileage

• The current price of petrol

An efficient petrol car may still be economical to run, but an efficient EV charged primarily at home can offer significantly lower day-to-day energy costs.

The Bottom Line for UK Drivers

The cheapest way to run an EV is usually home charging combined with a competitive electricity tariff.

For drivers who mainly rely on expensive public rapid chargers, the difference between petrol and electricity can become much smaller. But for people who drive regularly and have the ability to charge overnight at home, an electric car can offer substantial savings over time.

The real question is not simply “Is electricity cheaper than petrol?”

It is:

“How much does it cost to move your particular car one mile?”

For many UK drivers, that calculation continues to favour electric vehicles especially when charging at home.