Electric Car Running Cost UK 2026 Per Mile & Annual Guide
Running an electric car in the UK costs 4-9p per mile for electricity compared to 16-20p per mile for petrol. Over 10,000 miles/year, that is £400-900 for an EV vs £1,600-2,000 for petrol — saving £800-1,600 annually on fuel alone. Add in cheaper servicing (no oil changes, brake wear reduced by regen) and lower road tax (£0 VED for EVs registered before 2025), and total running cost savings reach £1,200-2,500/year.
Fuel Cost: EV vs Petrol vs Diesel
For 10,000 miles/year: EV on Octopus Go (7.5p/kWh): £197/year (2.0p/mile). EV on Economy 7 (15p/kWh): £395 (3.9p/mile). EV on standard (34p/kWh): £895 (9.0p/mile). Petrol (35 MPG, 145p/L): £1,886 (18.9p/mile). Diesel (45 MPG, 152p/L): £1,537 (15.4p/mile). Hybrid (50 MPG, 145p/L): £1,319 (13.2p/mile). Even at standard home rates, an EV costs half what petrol costs. On an EV tariff, it is 90% cheaper.
Servicing and Maintenance
EVs have far fewer moving parts than ICE cars — no engine oil, timing belt, exhaust system, clutch, or gearbox. Annual EV servicing: £100-200 (mainly cabin filter, brake fluid check, tyre rotation). Annual petrol car servicing: £300-600 (oil change, filters, spark plugs, timing belt every 60K). Brake pads: EV regenerative braking means brake pads last 2-3x longer — £0 for many EV owners in the first 50,000 miles. Annual maintenance saving: £200-400/year.
Road Tax (VED) and BIK
Road tax (VED): EVs registered before April 2025 pay £0 VED. From April 2025, new EVs pay £10 first year, then standard rate (£190/year from 2026). Still cheaper than most petrol cars. Benefit in Kind (BIK): Company car EV BIK is just 2% in 2024-25, rising to 3% in 2025-26 and 4% in 2026-27. A £40,000 EV costs a 40% taxpayer just £640/year in BIK — vs £4,800+ for an equivalent petrol car. This makes EVs exceptionally attractive as company cars. Congestion charge: Most EVs are exempt from the London ULEZ and Congestion Charge, saving up to £15/day.
Insurance and Depreciation
Insurance: EV insurance is typically 10-20% more expensive than equivalent petrol cars due to higher repair costs (battery, specialist labour). Average EV insurance: £500-800/year vs £400-600 for petrol. This gap is narrowing as more repair shops gain EV expertise. Depreciation: Popular EVs like Tesla Model 3 and Hyundai IONIQ 5 hold value well (50-60% after 3 years). Less popular models can depreciate faster. Battery warranties (8 years/100,000 miles standard) support residual values.
| Cost Category | EV (Home Charge) | Petrol (35 MPG) | Saving |
|---|---|---|---|
| Fuel | £400-900 | £1,886 | £986-1,486 |
| Servicing | £150 | £450 | £300 |
| Road Tax (VED) | £190 | £190 | £0 |
| Insurance | £650 | £500 | (£150) |
| Total Running | £1,390-1,890 | £3,026 | £1,136-1,636 |
Total Cost of Ownership: EV vs Petrol
Over 3 years / 30,000 miles, comparing a £30,000 EV vs £25,000 petrol: EV total cost: Depreciation £12,000 + Fuel £1,200-2,700 + Servicing £450 + Insurance £2,100 + VED £380 = £16,130-17,630. Petrol total cost: Depreciation £10,000 + Fuel £5,700 + Servicing £1,200 + Insurance £1,800 + VED £570 = £19,270. EV saves £1,640-3,140 over 3 years despite higher purchase price. With BIK tax savings for company cars, the EV advantage is even larger.
Disclaimer: For educational reference only. Consult a licensed professional.