Study Compares EV and Petrol Running Costs

New research suggests many drivers could be spending far more than they need to by misunderstanding how electric vehicles are charged.

Despite rising numbers of electric vehicles on UK roads, public opinion appears to lag behind reality. Research from the AA shows that 80% of drivers believe electric cars are too expensive to buy, while only 21% think EVs are cheaper to run than petrol or diesel vehicles. One in five motorists also believes charging away from home costs more than refuelling a traditional car.

However, analysis from Leasing Options, in partnership with Ohme, challenges those assumptions and points to significantly lower running costs for drivers who charge smartly at home.

Are EVs really expensive to “fuel”?

According to Ohme, the UK’s largest home EV charging company, the cost comparison with petrol is stark.

For the same money spent on a gallon of unleaded petrol, enough for about 40 miles in a typical petrol car, an electric vehicle can travel around 90 miles using standard home electricity. When charged on a smart off-peak tariff, that same amount could power an EV for more than 350 miles.

The latest Standard Variable Tariff rate of electricity stands at 27.69p per kWh. With an average EV achieving roughly 3.5 to 4 miles per kWh, the savings become clear over a year.

Based on average UK mileage of 6,800 miles annually, a petrol car running on unleaded at £1.36 per litre costs around £1,049 per year. That works out at roughly 6 to 7 miles for every £1 spent.

Even on a standard electricity tariff, EVs cost significantly less per mile than petrol cars.

The impact of smart tariffs

Smart charging appears to make the biggest difference.

Tariffs such as Intelligent Octopus Go offer EV drivers six hours of off-peak electricity at 7p per kWh every 24 hours.

Peter McDonald, Ohme Mobility Director, said: “Six hours of electricity is 44.4kW, which is the equivalent of at least 130 miles for the majority of EVs, so most drivers often don’t need all of those six hours of charging. Many EV drivers just constantly top up with a small charge; they don’t do a ‘big fill’ like petrol or diesel drivers do.”

At 7p per kWh, the cost of covering the average 6,800 miles per year drops to around £136 annually, or just over £11 per month. That compares with more than £1,000 a year in fuel costs for a petrol car.

What about public charging?

Public charging, particularly ultra-rapid chargers, is often cited as a concern. These can cost up to 85p per kWh and are subject to 20% VAT, compared with 5% VAT for home electricity.

Peter added: “Ultra-rapid charging at public chargers can be very expensive – up to 85p/kWh – more than ten times the price of what you could pay at home. There is also 20% VAT on public charging, whereas it’s only 5% at home. However, the reality is that most EV drivers know that home will always be the cheapest place to charge, so use public chargers sparingly.”

How the costs compare

Ohme’s fuel comparison data for average UK mileage of 6,800 miles per year shows:

• Unleaded at £1.36 per litre: around £1,049 per year

• EV on standard tariff at 27.69p per kWh: around £538 per year

• EV on smart tariff at 7p per kWh: around £136 per year

Even without a smart tariff, EV drivers can halve their annual “fuel” costs compared with petrol.

Mike Thompson, Chief Operating Officer of Leasing Options, said: “The idea that EVs are expensive to run is outdated. When you look at how people actually charge their cars – mostly at home, often overnight, and increasingly on smart tariffs – the savings are undeniable. Even with rising energy prices, EVs remain dramatically cheaper to ‘fuel’ than petrol or diesel cars.”

He added: “As cost-of-living pressures continue into 2026, understanding the reality of EV running costs could help households save hundreds or even thousands of pounds each year.”