EV charging prices rise, but are still cheaper than petrol/diesel in real terms

Published:  29 April, 2022

EV drivers are experiening a higher increase in the cost of powering their vehicles, compared with those who use internal combustion engine vehicles, although in actual terms they are still paying less.

EV drivers are now paying around £200 more, equivalent to a 40% increase for electricity to fuel their vehicles, based on a 10,000 mile average mileage than in 2020. At the same time, petrol vehicle drivers are having to find an additional £435 per year, which equates to a 27% increase. Drivers of diesel vehicles are needing to pay a further £484, which represents a 35% rise.

Cecilia Routledge, Global Director, Energy & Facilities for CTEK said: “Rising global fuel prices are having a significant impact on the cost of motoring for EV owners and drivers of fossil fueled vehicles alike.

“Electricity prices have actually risen faster than petrol and diesel over the past two years, but even with the recent increase in the energy price cap and the 5p+VAT cut in fuel duty announced in the Chancellor’s Spring Statement on 23 March, the price gap between the cost of fuel for an EV mile and a petrol mile has actually increased by around 22% over the past two years, and the fuel price gap between an EV mile and a diesel mile has widened by around 32%.

Looking ahead, Cecilia said: “Consumers are bracing themselves for further hikes in electricity prices when the energy price cap is reviewed again in October, but for home charging, electricity prices would need to rise to around 74p to 81p per kWh before it starts to balance out with the cost of petrol or diesel.”

She added: ”As booming EV sales are expected to leave a £35bn black hole in the Treasury’s coffers every year, it is widely expected that the government may introduce some kind of EV tax in the not too distant future. A recent report from the Transport Select Committee advocated a road pricing approach, which would charge drivers per trip based on distance travelled, journey duration and vehicle type. However, there are no firm proposals just yet.”

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