Electric vehicles (EVs) vs petrol and diesel cars.

Key takeaways: EV vs petrol cars at a glance.

• Home charging unlocks 50%+ fuel savings: Charging an electric car at home costs as little as 2p–3p per mile on dedicated off-peak EV tariffs (like E.ON Next Drive), compared to 15p–18p per mile for a typical petrol car.

• Lower maintenance over time: EVs have fewer moving parts, requiring no oil, spark plug, or timing belt changes. Regenerative braking also reduces brake wear, cutting routine servicing costs by 30%–40% compared to petrol models.

• Tax rules: While EVs pay standard Vehicle Excise Duty (VED / Road Tax), HM Treasury sets a higher £50,000 threshold for the Expensive Car Supplement on zero-emission vehicles, saving mid-range EV buyers £440/year compared to petrol cars over £40,0001.

• Massive salary sacrifice savings: For business users and corporate employees, EV Benefit-in-Kind (BIK) tax rates remain exceptionally low (2%–4%), delivering thousands of pounds in annual tax savings compared to petrol company cars (up to 37% BIK).

• The public charging caveat: Relying 100% on public rapid chargers (averaging 70p–76p/kWh) erases fuel savings. To maximise total cost of ownership (TCO) benefits, off-street home or workplace charging is essential.

Why compare electric and petrol cars?

See how electric cars are becoming more cost competitive.

As the planet gets warmer, we're all thinking about what we can do to make a difference in our daily lives and hit our climate goals. One of the ways we can cut CO2 emissions (also called greenhouse gas emissions), without changing our day to day too much, is by switching from a petrol car to an electric vehicle.

This is because an EV, as the name implies, runs on electricity rather than using fossil fuels. And if you get the right energy tariff then often it's renewable energy you're using to fill the kWh in your EV battery.

However, there's often confusion around the benefits of switching to an electric vehicle. For example will you save money in the long run or where can you get a home charger installed and what will the impact be?

We're here to help you get the answers you need and help compare electric cars to petrol and diesel vehicles.

Are electric cars cheaper than petrol cars?

While fully electric vehicles (BEVs) generally still carry a higher upfront purchase price than their petrol equivalents, the overall total cost of ownership (TCO) swings in favour of the EV for the majority of UK drivers.

According to GOV.UK Vehicle Excise Duty Reform Guidelines, electric vehicles pay the standard rate of VED. However, HM Treasury sets a higher £50,000 Expensive Car Supplement threshold for zero-emission vehicles (compared to £40,000 for petrol and diesel models), protecting mid-range EV buyers from the £440/year luxury car tax penalty.

Combined with fuel savings—where home charging costs as little as 2p–3p per mile on dedicated off-peak tariffs—EVs offset their initial cost gap over a standard 3-to-5-year ownership period.

The key financial advantage comes down to cost per mile, where charging an EV at home overnight could offer major fuel savings compared to petrol forecourt prices

Data assumes standard driving efficiency (~3.5 miles/kWh for EVs). Public charging rates sourced from Zapmap Price Index.

Can electric vehicles be cheaper over their lifetime than petrol or diesel cars?

Over a 3-to-5-year ownership cycle, lower running and maintenance costs offset the initial purchase premium, making electric vehicles cheaper overall.

The lifetime tax advantage for businesses & employees:

For drivers acquiring an EV through business fleets or Salary Sacrifice schemes, choosing an electric vehicle can offer substantial tax efficiencies. Under HMRC Company Car Tax Guidance, Benefit-in-Kind (BIK) rates for zero-emission vehicles remain low (rising incrementally from 3% to 5% through 2028), compared to up to 37% for higher-polluting petrol vehicles.

Depending on your income tax band and the vehicle’s list price, this tax differential can save corporate drivers thousands of pounds each year compared to running a petrol company car2.

So why switch to an electric vehicle?

In case you missed it, from 2035 the UK government is ending the sale of new petrol and diesel cars (previously the ban was from 2030, but pushed back to 2035 by the government in 2023). This is designed to reduce our carbon emissions and help hit our goal of ending the UK's contribution to climate change. It also means that more and more cars are going to be electric. Not quite the flying cars of the future we were promised, but it's a positive start.

By ending the UK's contribution to climate change in 2050, carbon emissions will reduce by the equivalent of taking 4 million cars off the road.

Want to know more about EV batteries?

We've put together a useful guide so you can understand how we use kilo-watt hours (kWh) to measure battery capacity, their average lifespan and how you can extend it.

Electric car batteries are one of the more expensive parts of an EV as they use rare and expensive materials, however as their costs come down they make electric cars more cost effective.

Interested in getting an energy tariff for your electric vehicle?

Check out Next Drive, our electric vehicle tariff.

Included with this tariff is a free 1 year subscription to Zoom EV, giving you benefits and discounts on things like public charging and parking.＊