New analysis: petrol car drivers paid a £500 ‘petrol premium’ in 2024

New analysis from the Energy and Climate Intelligence Unit (ECIU) has found that the top 10 selling petrol cars of 2024 could see their drivers paying an additional ‘petrol premium’ of £540 a year to run an internal combustion engine car rather than an electric one. [1] In fact, over the course of their lifetimes, all the petrol cars sold in 2024 will cost their drivers over £5bn more to own and run them. [2]

Conversely, drivers of the top 10 selling EVs of 2023 – such as the Tesla Model Y, the Audi Q4 and the MG4 - will enjoy a ‘battery bonus’ of £1,300 a year in lower ownership costs than those they would have paid if they’d bought a similar petrol car. [3]

In 2024, around 385,000 EVs will likely to have been sold in the UK. Separate analysis by the ECIU has found that, combined with credits earned through the sale of low emission petrol and diesel cars, this means the Zero Emissions Vehicle Mandate target, a policy introduced by the previous Government, will have been met. [4]

Colin Walker, Transport Analyst at the Energy and Climate Intelligence Unit, said:

“A £540 annual petrol premium is no small sum. As manufacturers compete with each other to make the sales they need to hit their ZEV mandate targets, the sticker prices of EVs are being driven down, meaning those who buy cars new can look forward to some serious savings by going electric.

"But with 80% of cars sales being second hand, and used EVs being very similar in price to their petrol equivalents, there are quick savings to be had for more and more families. The ZEV Mandate is critical to expanding the flow of second hand EVs to help out more families, as a new car sold this year will enter the used market in just three to four years’ time.”

ENDS

Notes to editors: 
 

1. Savings are based on a calcuation of a vehicle's total costs of ownership over a typical 14 year lifespan. Costs include: upfront sticker price; fuel/energy costs; insurance; service and maintenance; and vehicle excise duty. 
2. These top-ten selling petrol cars account for c.30% of new petrol car sales that will total around 670,000 in 2024 (based on sales data to November, and an estimate for December).  If all of these c.670,000 petrol cars cost £540 extra to run each year for 14 years, then drivers would pay an extra £5bn over that time.  In reality, the extra cost will be even higher because most of these top-ten models are smaller cars that use less energy per mile and hence show a smaller cost differential between petrol and electricity than would be seen across the full set of new petrol cars.
3. The top-ten selling EVs were analysis in the same manner, compared to their petrol equivalents.  These are mostly larger cars, which use more energy per mile and hence show a larger annul cost differential between petrol and electricity, contributing to the larger overall difference in average annual total cost of ownership.
4. https://eciu.net/media/press-releases/2024/car-industry-set-to-meet-ev-sales-targets-in-2024-analysis 

For more information or for interview requests: 

George Smeeton, Head of Communications, ECIU, Tel: +44 (0)7894 571 153, email: george.smeeton@eciu.net