EV charging industry voice, ChargeUK, has revealed data proving that EV ownership can still be cheaper than petrol or diesel ownership even if the vehicle is only charged on the public network, with rising oil prices tipping the cost scales further in favour of EVs.
It’s already well established that charging an EV at home, particularly on an EV-dedicated energy tariff, can net substantial cost savings over a petrol or diesel car, with running costs as low as 2p per mile on some cases. But, with pump prices for petrol and diesel rising over the last couple of months, even some public charging is undercutting the cost of filling up a combustion engined car.
According to Zapmap data, the price at public chargers below 50kW stands at 49p per kWh. Factoring in typical EV efficiency, that equates to around 15p a mile. That compares to petrol and diesel, which currently hold average prices of 157.34p per litre and 189.88p per litre respectively. This means a petrol car costs roughly 17p per mile to run, whilst a diesel car costs around 17.5p per mile to run. The gap may be small, but it proves that with unpredictable oil prices, EV ownership can still be cheaper – even for those without a home charger, who need to rely on overnight chargers within the public charging network.
Earlier this year, there was hope that public charging could get even more affordable, with a tax tribunal concluding that VAT on public charging should be cut down from its current rate of 20%, to 5%, in line with the same VAT rate charged on domestic energy. However, HMRC, the UK’s tax authority, has now decided to appeal the ruling, leaving the possibility of cheaper public charging up in the air for now.
Vicky Read, Chief Executive of ChargeUK, commented:
“While this is not how we wanted to see the gap between public EV charging and petrol prices closed, it once again demonstrates the urgent need to make driving an EV more affordable for all. Following news that new electric cars are now cheaper than petrol, the cost of public charging is now the final hurdle for mass EV adoption.
We need to see government take control of the situation to ensure the numbers stack up not just in a time of global crisis, but for the long term. The cost pressures currently pushing up public EV charging prices are largely within the government’s grasp, whereas the global pressures pushing up petrol and diesel prices are not.
By using the cost of charging review to address skyrocketing charge point standing charges, eliminating the VAT penalty on public charging and adding renewable electricity to its renewable transport credit scheme, government can help reduce public EV charging prices—saving money for millions of drivers, making an EV viable for millions more, doubling down on electrification and helping automakers meet their EV sales quotas just as interest in going electric grows.”
