The electric vehicle conversation in 2026 has moved past "are they the future?" to "do the numbers actually stack up for me?" The answer depends more on your charging situation than on the car itself. A home-charged EV is dramatically cheaper to run than a petrol car. A publicly-charged EV may not be.
This guide compares the real running costs — fuel, tax, servicing, insurance, and depreciation — for a typical UK driver in 2026, using current prices and real-world efficiency data. This is general information, not purchasing advice.
Fuel costs: the biggest difference
The per-mile fuel cost is where the EV's advantage is most visible — or most misleading, depending on your charging access.
Home charging (the best case):
- Off-peak EV tariff: ~7.5p per kWh (Octopus Go, OVO Charge Anytime, E.ON Next Drive)
- Real-world efficiency: 3.5–4.0 miles per kWh (typical family EV)
- Cost per mile: 1.9–2.1p
Standard-rate home charging:
- Standard tariff: ~24p per kWh
- Cost per mile: 6.0–6.9p
Public rapid charging:
- Rapid charger (50–150 kW): 55–75p per kWh
- Cost per mile: 14–21p
Petrol car (for comparison):
- UK average petrol price: £1.45 per litre (RAC Fuel Watch, June 2026)
- Average fuel economy: 42–48 mpg (real-world, mixed driving)
- Cost per mile: 14.7–16.8p
The headline is stark: a home-charged EV on an off-peak tariff costs roughly one-eighth as much per mile as a petrol car. Over 10,000 miles per year, that is £1,450–£1,550 saved on fuel alone. Over 8,000 miles, the saving is £1,150–£1,250.
But the public-charging comparison is much tighter. A driver who relies entirely on public rapid chargers pays roughly the same per mile as a petrol driver — and in some cases, more.
Other running costs
| Cost category | EV (annual, 10,000 miles) | Petrol (annual, 10,000 miles) | Difference |
|---|---|---|---|
| Fuel/charging | £190–£210 (home, off-peak) | £1,550–£1,680 | -£1,350 |
| VED (road tax) | £10 (discounted from April 2025) | £190 (typical 130 g/km CO₂) | -£180 |
| Servicing | £120–£180 | £250–£350 | -£130 |
| Insurance | £450–£650 | £350–£500 | +£150 |
| Total annual running cost | £770–£1,050 | £2,340–£2,720 | -£1,500 |
The EV saves roughly £1,500 per year in running costs for a home-charging driver covering 10,000 miles. For a publicly-charging driver, the saving shrinks to roughly £200–£500 — still positive, but far less dramatic.
Purchase price and depreciation
The EV purchase premium is shrinking but has not disappeared:
| Segment | Petrol example (new) | EV example (new) | Price difference |
|---|---|---|---|
| Supermini | Vauxhall Corsa 1.2 (£18,500) | BYD Dolphin (£22,000) | +£3,500 |
| Family hatchback | VW Golf 1.5 (£28,000) | MG4 EV (£26,000) | -£2,000 |
| Compact SUV | Kia Sportage 1.6 (£32,000) | Kia EV3 (£34,000) | +£2,000 |
| Premium saloon | BMW 3 Series (£42,000) | Tesla Model 3 (£42,000) | ~£0 |
The gap has narrowed dramatically. Chinese and Korean manufacturers — BYD, MG, Kia, Hyundai — are now pricing EVs competitively with petrol equivalents in the family-car segment. Premium European brands still charge a premium for their EV models.
Depreciation is the wildcard. Early EVs suffered steep depreciation due to rapid technology improvements and range anxiety, but the market has matured. In 2026, three-year-old EVs with 200+ miles of range hold their value comparably to petrol equivalents, according to CAP HPI data. The exception is older, shorter-range EVs (sub-150 miles), which depreciate more steeply.
Total cost of ownership over three years
Let us compare a mid-size family car over three years and 30,000 miles:
Petrol: VW Golf 1.5 (~45 mpg)
- Purchase price: £28,000
- Fuel (30,000 miles): £4,830
- VED (3 years): £570
- Servicing (3 years): £900
- Insurance (3 years): £1,200
- Residual value after 3 years: ~£15,500
- Total 3-year cost: £20,000
EV (home-charged): MG4 EV
- Purchase price: £26,000
- Charging (30,000 miles, home off-peak): £600
- VED (3 years): £30
- Servicing (3 years): £450
- Insurance (3 years): £1,650
- Residual value after 3 years: ~£13,000
- Total 3-year cost: £15,730
EV (public-charged): MG4 EV
- Purchase price: £26,000
- Charging (30,000 miles, public rapid): £4,500
- VED (3 years): £30
- Servicing (3 years): £450
- Insurance (3 years): £1,650
- Residual value after 3 years: ~£13,000
- Total 3-year cost: £19,630
The home-charged EV saves roughly £4,300 over three years versus the petrol equivalent. The publicly-charged EV saves only £370 — essentially a wash once you factor in the inconvenience of charging stops.
Head-to-head summary
| Factor | EV (home-charged) | EV (public-charged) | Petrol |
|---|---|---|---|
| Fuel cost per mile | 2–3p | 15–21p | 15–17p |
| Annual fuel (10,000 miles) | £200–£300 | £1,500–£2,100 | £1,550–£1,680 |
| VED | £10/year | £10/year | £190/year (typical) |
| Servicing | 30–50% cheaper | 30–50% cheaper | Baseline |
| Insurance | 20–30% more expensive | 20–30% more expensive | Baseline |
| Purchase premium | £0–£5,000 | £0–£5,000 | Baseline |
| 3-year TCO (30k miles) | Lowest | Comparable to petrol | Baseline |
| Refuelling time | 6–8 hours (home) / 30 min (rapid) | 30–60 min (rapid) | 5 minutes |
| Range | 200–350 miles | 200–350 miles | 400–600 miles |
The bottom line
For a UK driver who can charge at home on an off-peak tariff, an electric car is unequivocally cheaper to run than a petrol equivalent — by roughly £1,500 per year in running costs and £4,000+ over three years of total ownership. The purchase premium has narrowed to the point where many EVs are price-competitive on the forecourt, and the running-cost savings are pure upside.
For a driver who relies on public charging, the economics are much closer. The per-mile cost is comparable to petrol, and the purchase premium — while shrinking — means the total cost of ownership is similar. The environmental case remains, but the financial case is not compelling.
The charging-access divide is now the single most important factor in the EV decision. If you have a driveway, garage, or allocated off-street parking, an EV makes financial sense in 2026. If you park on the street and depend on public chargers, a hybrid or efficient petrol car may still be the more practical and cost-effective choice.