Petrol owners forced to pay £700 ‘premium’ compared to electric vehicles

Petrol drivers are being forced to pay around £700 more than electric car owners to keep their vehicles on the road, according to fresh analysis.

Data from the Energy and Climate Intelligence Unit (ECIU) shows that combustion owners are paying a “petrol premium” with higher costs across the board.

They revealed the top 10 selling petrol cars of 2023 – including the Vauxhall Corsa and Nissan Juke – could cost owners £700 more to run every year than their direct EV counterparts.

Fuel is a major cost burden with petrol and diesel fees continuing to remain high compared to EV charging.

Meanwhile, petrol owners pay annual Vehicle Excise Duty compared to EVs which are still exempt.

Colin Walker, Transport Analyst at the Energy and Climate Intelligence Unit, revealed that paying higher upfront costs for an EV would eventually pay off.

Meanwhile, he predicts more affordable models will soon enter the market as manufacturers are forced to produce more zero-emission models.

He explained: “With drivers being hit by a £700 petrol premium, a switch to an EV will see a quick return on the investment made.

“Electric car sticker prices are falling, with analysts at Goldman Sachs expecting price parity to be reached by the middle of the decade.

“However, since less than 20 percent of car sales in the UK are for new vehicles, it’s the growth of the second-hand EV market that is critical if more families are to be able to access the cheaper driving than comes from EV ownership.

“With the ZEV mandate coming into force next year, more new EVs will be sold which, in turn, will result in more EVs making their way onto the second-hand market in the years to come.”

The ECIU anticipates that over 300,000 EVs will have been sold in the UK in 2023. Throughout their lifespans, these models will generate a total of £5.6billion in savings for their owners compared to similar petrol vehicles.

Meanwhile, petrol cars sold in 2023 will cost their owners an extra £7.6bn compared to their EV equivalents.

Alongside fuel and tax savings, EV owners may also benefit from needing less maintenance than their combustion alternatives.

EVs don’t have transmissions, there are fewer engine parts to wear down and no oil changes are needed. Experts at Cinch commented: “Overall maintenance costs are usually lower.

“Electric drivetrains are a simpler set-up and have fewer moving parts than internal combustion engines, so they require less upkeep overall.”

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