Snap analysis: EVs still £1,000 cheaper to run with 3p/mile charge
Analysis shows that even with a 3p per mile tax, reported by media as a possible announcement at the next budget, EVs would still be £1,000 cheaper to run per year than petrol cars.

By Colin Walker
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Analysis by the Energy and Climate Intelligence Unit (ECIU), based on the ten best-selling EVs of 2024, [1] shows that even with a 3p per mile tax, reported by media as a possible announcement at the next budget, EVs would still be £1,000 cheaper to run per year than petrol cars.
Reports suggest that Chancellor Rachel Reeves is considering a 3p-per-mile charge for the UK's electric vehicle (EV) drivers at this month's Autumn Budget [2]. Commenting, Colin Walker, Head of Transport at the Energy & Climate Intelligence Unit (ECIU), said:
“Many experts are understandably concerned that this could send the wrong signal to drivers thinking of making the switch to EVs, with the Government repeating the chopping and changing of EV policies that we saw under the previous administration.
“EVs are already cheaper to run than petrol cars and, even with a 3p per mile charge, they will still remain over £1000 a year cheaper to run. But this announcement comes shortly after the Government gave in to industry lobbying by weakening its EV sales targets. This could enable industry to push more hybrids on drivers that burn five times more fuel than their manufacturers claim, and cost hundreds of pounds more a year to run than EVs.
“Longer-term, it would be expected that all road users make a contribution, but Government risks sending mixed signals and undermining consumer confidence by trying to encourage drivers into EVs with one policy, and possibly putting them off with another. The net result could be to keep people stuck in dirtier and more expensive petrol cars for longer.”
Notes to editors:
1.The analysis calculates the total annual costs of ownership of the best-selling EVs of 2024, applies a 3p/mile cost, and compares them with the total costs of ownership of their petrol equivalents. The analysis assumes that the vehicles are being driven for 8,000 miles per year.
2. Reports: Chancellor to roll out 'pay-per-mile tax' for EV drivers: https://www.businessgreen.com/news/4521435/reports-chancellor-roll-pay-mile-tax-ev-drivers
For more information or for interview requests:
George Smeeton, Head of Communications, ECIU, Tel: 07894 571 153, email: george.smeeton@eciu.net