‘Petrol premium’ rises £100 a year as Ofgem price cap makes EV charging cheaper

This is indicative of a pattern that we are likely to see continue for the rest of the decade. Analysts expect electricity prices to continue falling, whilst petrol prices are likely to continue increasing as they have done for the last 20 years. Past analysis by the ECIU indicates that, by 2030, this will result in petrol cars becoming £1,350 more expensive to operate [3] than their electric equivalents than they are today.

Commenting on the analysis Colin Walker, Head of Transport at the Energy & Climate Intelligence Unit said: “Drivers of petrol cars already pay a significant petrol premium to run those vehicles, compared to EVs. This premium will only get higher as electricity prices come down and EVs become even cheaper to run.

"Political instability has historically driven petrol price volatility and this is set to continue. EVs help protect consumers from these price shocks, and as the second-hand EV market continues to expand more households are able to afford to buy an EV and make these savings. As North Sea oil output inevitably declines, EVs can be charged on electricity generated from wind farms instead.”