One of the biggest questions for UK car buyers in 2026 is whether an electric vehicle actually saves money on running costs. With petrol at 149.80p per litre and the energy price cap rising 13% from 1 July 2026 to 26.11p per kWh, the cost per mile comparison between electric and petrol cars has shifted. Here is the updated picture for July 2026. (source)
Electric vs petrol — cost per mile in 2026
At current energy prices, the fuel cost per mile for electric vehicles is significantly lower than for petrol cars when charged at home. However public charging costs have risen substantially and can make EVs more expensive per mile than petrol in some scenarios.
Petrol car cost per mile
For a petrol car achieving 40 MPG at 149.80p per litre:
- Litres per mile: 4.546 ÷ 40 = 0.1136 litres
- Cost per mile: 0.1136 × 149.80p = 17.0p per mile
For a more efficient 50 MPG car: 13.6p per mile
For a less efficient 30 MPG SUV: 22.6p per mile
Electric car cost per mile — home charging
At the current Ofgem price cap of approximately 24p per kWh for home electricity, and assuming 3.5 miles per kWh (typical for a mid-size EV):
- Cost per mile: 24p ÷ 3.5 = 6.9p per mile
With an Economy 7 overnight tariff at around 10p per kWh: 2.9p per mile
Electric car cost per mile — public charging
Public rapid chargers now typically cost 70-85p per kWh, which dramatically changes the calculation:
- At 75p per kWh: 75p ÷ 3.5 = 21.4p per mile — more expensive than a 40 MPG petrol car
This is why EV running cost savings depend heavily on having home charging available.
Annual cost comparison for an average driver
For a driver covering 8,000 miles per year:
- 40 MPG petrol car at 156p/litre: £1,011/year
- EV with home charging at 24p/kWh: £158/year
- EV with public charging at 75p/kWh: £1,143/year
The home-charging EV saves around £853 per year on fuel costs alone compared to an average petrol car.
Other costs to consider
Fuel is only part of the picture. EVs typically have lower servicing costs (no oil changes, fewer brake replacements due to regenerative braking) but higher purchase prices. Road tax is currently free for zero-emission vehicles, though this will change from April 2025 when EVs become subject to standard VED rates.
Is an EV right for you?
The savings are real but depend on your situation. If you have home charging, drive mainly local miles and can charge overnight, an EV makes strong financial sense at current prices. If you rely on public charging or do high motorway mileage, the savings are much smaller.
For petrol and diesel drivers, the best immediate action is finding the cheapest fuel near you. Use Save at the Pump to find the lowest price within your chosen radius, updated every hour.
July 2026 update — energy cap rise affects EV costs
The Ofgem energy price cap rose 13% from 1 July 2026, pushing the standard variable electricity rate to 26.11p per kWh. This increases home charging costs for EV drivers. However, drivers on overnight off-peak EV tariffs from suppliers like Octopus Energy can still charge at 7-8p per kWh overnight, maintaining a very large cost advantage over petrol. See our dedicated energy price cap July 2026 guide for EV drivers for the full analysis.