Electric vs petrol cars cost comparison: Which is cheaper to run in 2026?
Back to 'Expert guides'There’s little doubt that Electric vehicles (EVs) have long been hailed as the future of motoring, but are they finally cost-competitive with petrol cars in 2025? With shifting government policies, changing fuel and electricity prices, as well as evolving vehicle costs, the financial picture is more complex than ever.
Let’s break down the key factors influencing the cost of running EVs versus petrol cars this year.
Road tax (VED) changes
One of the biggest shifts in the cost of running an EV in 2025 comes from changes to Vehicle Excise Duty (VED). Previously, EVs were exempt from road tax, but from April 2025, all new and existing electric cars have been subject to standard VED rates.
From last year, any electric vehicle is now liable to pay £10 for its first year on the road. After the first year, Band A vehicles have been recategorised and will now be subject to the Band B rate of £190 per year.
Those that plump for a high-value EVs (over £40,000) will also be hit with the Expensive Car Supplement of up to £600 per year for the first five years.
Read more about EV road tax changes in 2025
Fuel costs vs charging costs
Fuel and energy prices remain volatile, but the cost difference between petrol and electricity has accelerated dramatically so far in 2026. This is because the price at the pumps has gone up and, while electricity costs have also increased, the cost per mile comparison has increased.
As of 2026, driving an EV costs between 2 and 10p per mile depending on how you charge, compared with 15p and 21p per mile for a petrol vehicle. Public fast chargers, can cost as much as £0.75 per kWh, making them less economical than home charging.
However, thanks to our new partner Be.EV, we’ve got you covered when it comes to keeping costs low.
Public EV Charging: Made Simple with Be.EV
If you’re thinking of going electric, you’ll be pleased to hear we’ve got an exclusive offer from our partner Be.EV. They make public EV charging simple, affordable and easy to understand.
Their growing network of rapid chargers combined with subscription plans can help reduce charging costs. And thanks to our offer, you’ll get a further 50% off your first two charges of your new electric lease vehicle.
Are EVs more expensive to insure?
The latest evidence shows that electric cars can be more expensive to insure than some petrol versions. When you compare the Vauxhall Corsa Electric to a petrol-powered Corsa, a recent study found that costs were 14% higher for the electric model.
The difference in cost can be put down to several factors. In the Corsa’s case, for example, the electric variant is 36% more powerful than the petrol variant. EVs are also heavier and, due to the cost of battery replacement, will be more expensive to assess and repair if they are involved in a collision.
Insuring a lease car: Everything you need to know
What about the cost of the vehicles themselves?
EV prices have steadily dropped, but they still command a premium over petrol counterparts. Leasing has emerged as the most cost-effective way to access a new EV without the burden of high upfront costs.
Compared to outright purchase, leasing spreads the cost over fixed monthly payments, and is particularly beneficial for EVs as it eliminates any concerns about depreciation – a major issue given the fast-paced advancements in battery technology and resale value fluctuations.
Models like the Tesla Model 3 and Hyundai Ioniq 5 are becoming more affordable through leasing deals, making them accessible without the long-term financial risk of ownership.
Petrol alternatives, such as the BMW 3 Series or Hyundai Tucson, remain cheaper to buy outright, but leasing can help mitigate their depreciation costs as well.
Additionally, salary sacrifice schemes and EV-specific lease incentives can further enhance the financial viability of going electric, particularly for company car users.
The cheapest new electric cars you can lease
Maintenance and Running Costs
One area where EVs still have a clear advantage is maintenance. Without complex internal combustion engines, EVs require fewer moving parts, meaning lower servicing and repair costs.
There’s no need for oil changes, timing belt replacements, or fuel system repairs. However, tyre wear is often higher due to the extra weight of EVs, and battery replacement costs, while rare, can be substantial if they occur outside warranty periods.
Conclusion: Is there price parity between petrol cars and EVs yet?
In 2025, the cost of running an EV is still generally lower than a petrol car, particularly for those who can charge at home. However, the savings are not as significant as they were a few years ago due to rising electricity costs and the introduction of VED for EVs.
While maintenance remains a strong advantage for EVs, the higher initial purchase price and expensive public charging rates mean that, for many, petrol cars still offer a competitive total cost of ownership.
Ultimately, the decision comes down to personal circumstances. If you have access to cheap home charging and plan to keep your car long-term, an EV is likely to be the more economical choice.
However, for those who rely on public charging or prefer lower upfront costs, a petrol vehicle might still be the more budget-friendly option in 2026.
