The Ofgem energy price cap rose 13% from 1 July 2026, pushing the average annual dual-fuel bill from £1,477 to £1,663 for a typical household paying by Direct Debit. The rise was caused by higher wholesale gas prices resulting from the Middle East conflict. For electric vehicle drivers, higher electricity costs affect home charging costs and the financial case for EV ownership. Here is exactly what changed, what it costs EV drivers, and how home charging still compares to filling up with petrol.
What changed from 1 July 2026?
Ofgem confirmed on 27 May 2026 that the energy price cap would rise by 13% from 1 July. For a typical dual-fuel household paying by Direct Debit, the annual bill rises from £1,477 to £1,663, an increase of £186 per year. The cap covers the period 1 July to 30 September 2026, after which Ofgem will set new rates for October to December 2026. (source)
The new unit rates from 1 July 2026 under the standard variable tariff are:
- Electricity: 26.11p per kWh (daily standing charge 57.19p)
- Gas: 7.33p per kWh (daily standing charge 29.04p)
Customers on fixed tariffs are unaffected. Around 40% of accounts, approximately 22 million, are on fixed tariffs and will not see this increase. If you are on a standard variable tariff, switching to a fixed deal before the October cap announcement may be worth considering depending on your supplier's available rates.
What does this mean for EV home charging costs?
Home charging costs have risen in line with the electricity unit rate. At the new rate of 26.11p per kWh, the cost of charging a typical 60 kWh EV battery from empty to full at home is approximately £15.67. For a car with a real-world range of 200-250 miles per full charge, that works out to around 6-8p per mile for home charging.
This compares to petrol at 149.80p per litre. A petrol car achieving 40 MPG costs approximately 17p per mile in fuel. Even at the higher July electricity rate, home charging an EV costs around half as much per mile as filling up with petrol.
EV drivers on off-peak tariffs do much better
Drivers on dedicated overnight EV tariffs from suppliers including Octopus Energy can charge at rates of 7-8p per kWh overnight. At 7p per kWh, a full 60 kWh charge costs around £4.20, enough for 200-250 miles. That works out to approximately 1.7-2.1p per mile, roughly one tenth the cost of a petrol car at current prices.
The difference between a standard variable tariff EV driver (6-8p per mile) and an off-peak tariff EV driver (1.7-2.1p per mile) is significant. If you drive an EV and are not on a dedicated EV tariff, switching is almost certainly worthwhile.
Public rapid charging is now more expensive than petrol per mile
Public rapid charging is the exception to the EV cost advantage. At around 76p per kWh, rapid charging already costs more per mile than a petrol car. With the energy price cap rise potentially feeding through to public charging costs, EV drivers who rely heavily on public charging rather than home charging face a very different financial picture.
At 76p per kWh, charging a 60 kWh battery costs around £45.60, giving approximately 200-250 miles of range, or around 18-23p per mile. This is significantly more expensive than the 17p per mile for a 40 MPG petrol car at current prices.
Will the October 2026 cap be higher or lower?
Ofgem will publish the October to December 2026 cap rates by 26 August 2026. Energy consultancy Cornwall Insight has warned that UK households remain heavily exposed to international market movements, and what happens in wholesale energy markets over the next three months will determine the October cap level. MoneySavingExpert notes that the cap is predicted to rise again in October due to the ongoing conflict in the Middle East. (source)
However, if the US-Iran peace deal holds and oil and gas prices continue falling, there is also a scenario in which the October cap falls from the July level. The Brumble energy price cap tracker, which aggregates predictions from British Gas, EDF Energy and E.on Next, provides regularly updated forecasts.
The petrol vs electric comparison in July 2026
Taking all of this together, here is where the cost per mile comparison stands in July 2026:
| Fuel type and scenario | Cost per mile |
|---|---|
| EV on overnight off-peak tariff (7p/kWh) | 1.7-2.1p |
| EV on standard home tariff (26.11p/kWh) | 6-8p |
| Petrol car at 40 MPG (149.80p/litre) | 17p |
| Diesel car at 44 MPG (164.77p/litre) | 16.5p |
| EV on public rapid charger (76p/kWh) | 18-23p |
For petrol car drivers, the comparison with home-charged EVs remains compelling despite the July cap rise. The cost advantage of a home-charged EV over a petrol car is approximately 9-15p per mile, which over 10,000 miles per year represents a saving of £900-£1,500 in fuel costs alone.
What can petrol drivers do?
If you drive a petrol or diesel car, the July energy price cap rise does not directly affect your fuel costs. Petrol prices have been falling since April and currently stand at 149.80p per litre nationally. Use our live fuel price map to find the cheapest station near you, updated every hour from official Government data. Our fuel cost calculator shows exactly what you spend annually at current prices.
Sources
- Ofgem energy price cap — ofgem.gov.uk
- MoneySavingExpert energy price cap tracker
- RAC Fuel Watch — petrol price data