New analysis from the Energy & Climate Intelligence Unit (ECiU) has found EV drivers could save an extra £200 a year compared to petrol car drivers.
Octopus Energy has recently announced it will cut its EV charging tariff, which allows drivers to charge cheaply overnight, from 7p per kWh before the war started, to 5.5p per kWh as of the 1st April – a price that could allow an EV to be driven for less than 1.5p per mile.
By comparison, at £1.50 a litre, a petrol car typically costs 17p per mile to run.
This comes as war in the Middle East is driving up petrol prices, with recent analysis by the ECIU finding that oil trading at $100 could see petrol rising from £1.32 per litre before the war started, to £1.50 – increasing the cost of fuelling a petrol car from £1220 a year before the war started, to £1390.
Prior to the conflict, many EV drivers could save an average of £850 a year from charging an EV over fuelling a petrol car. However, an increase in the price of petrol to £1.50, and a cut in the cost of charging to 5.5p per kWh, could see savings for EV drivers using Octopus’ Intelligent Go tariff jump to £1040 a year.
While the price of petrol is rising, caps on the cost of electricity in place until June this year – which were set based on prices before the war – will shield many EV drivers from the shocks we are currently seeing in global energy markets.
The price cap is expected to rise this summer due to rising gas prices – but, even with higher electricity prices, EVs remain significantly cheaper to run than petrol cars, with fuelling costs of less than a third of those of a petrol car during the gas crisis in 2022, it said.
Furthermore, the ECiU said EV customers signing on to Octopus’ Intelligent Go tariff will be protected from any such rises, since the new 5.5p per kWh rate is fixed for 12 months.
Were the predictions we have seen in some quarters that oil could hit $150 a barrel become a reality, the price of petrol could jump to £1.90 a litre. Were this to happen, the cost of fuelling a petrol car would jump to £1760 a year.
This would result in EVs costing their owners £1410 a year less to charge their cars than fuel a petrol car, based on the new prices – £560 higher than before the conflict started.
Colin Walker, Head of Transport at the Energy & Climate Intelligence Unit (ECIU), said:
“With over 1.8 million EVs on the UK’s roads, an increasing number of British drivers are now much more protected from these kind of global oil price spikes. While petrol car drivers are facing a jump in their fuel bills, some EV drivers could actually see their charging costs come down, increasing the savings they were already making before the war started.
“Some industry voices are calling for the UK to slow its switch to electric vehicles, but let’s be clear – EVs powered by British wind and solar farms help the UK cut its dependence on foreign oil imports, and protect its drivers from volatile markets over which we have no control. Oil is traded internationally, so trying to squeeze more out of the North Sea has little impact on the price paid at the pump.
“The UK is a leader amongst the world’s largest car markets in making the transition to electric cars, with its car industry producing ever more electric vehicles. The electric Nissan Leaf is already rolling off the production lines in Sunderland, while production of JLR’s new electric models is expected to start in the West Midlands this year.”
Image courtesy of Green Car Guide
