Comparison · Motoring · 2026
Electric Car vs Petrol Running Costs 2026: Which is Cheaper?
Electric cars promise lower running costs, but the picture for 2026/27 is more nuanced than it used to be. EVs now pay the same £200 standard car tax as petrol cars and can be caught by the expensive car supplement, while their big advantages remain cheap home charging, low servicing and a tiny 4% company car tax rate. This comparison breaks down fuel, tax, servicing and depreciation so you can see who actually saves money by going electric.
TL;DR - 30-Second Summary
- - EV wins on fuel if you charge at home on a cheap overnight tariff
- - Car tax is now level: EVs pay the £200 standard rate from year two
- - Company car tax favours EVs hugely: just 4% BIK for 2026/27
- - Public rapid charging can erase the petrol savings
Side by Side
| Cost area | Electric Car | Petrol Car |
|---|---|---|
| Fuel per mile | Low on home charging, higher on public rapid | Pump price, fairly stable per mile |
| VED car tax | £200 standard from year two | £200 standard from year two |
| Expensive car supplement | Yes if list price over £50,000 | Yes if list price over £40,000 |
| Company car BIK | 4% | Often 25% to 37% |
| Servicing | Lower, fewer moving parts | Higher, oil, clutch, exhaust |
| Upfront price | Usually higher | Usually lower |
| Depreciation | Variable, market still maturing | Well understood |
Fuel and unit prices are illustrative. Always check current charging and pump prices for your own numbers.
Worked Example: 10,000 Miles a Year
Imagine a driver covering 10,000 miles a year. The figures below are illustrative to show how the balance works rather than exact prices, because charging and pump costs vary. The point is where the savings come from, and where they vanish.
| Item | EV (home charging) | EV (public rapid) | Petrol |
|---|---|---|---|
| Fuel or charging per year | Lowest | High, near petrol | Pump price |
| Car tax | £200 | £200 | £200 |
| Servicing | Lower | Lower | Higher |
| Net running-cost position | Clearly cheaper | Roughly level | Baseline |
The verdict swings on charging. Charge at home overnight and the EV is comfortably cheaper to run. Rely on public rapid chargers and the fuel saving largely disappears, leaving servicing as the main advantage. Try the numbers in the electric car vs petrol calculator.
The Company Car Angle
If you can get a car through your employer or a salary-sacrifice scheme, the calculation changes entirely. A fully electric company car attracts a Benefit in Kind rate of just 4% for 2026/27, while a petrol equivalent might be taxed at 25% to 37% of its list price. That gap can be worth thousands of pounds a year in tax, dwarfing the running-cost differences and making an EV the obvious choice for company and salary-sacrifice drivers.
For privately bought cars this BIK advantage does not apply, so the decision rests on fuel, servicing, tax and depreciation instead.
Who Should Choose What
- - You can charge at home on a cheap tariff
- - You drive enough miles for fuel savings to add up
- - You take it as a company or salary-sacrifice car
- - You value low servicing and quiet driving
- - You have no home charging
- - You drive low mileage each year
- - You rely on public rapid charging
- - A lower upfront price matters most
Verdict
For 2026/27 the running-cost case for electric cars is strong but conditional. With home charging and reasonable mileage, an EV is clearly cheaper to run on fuel and servicing, even though car tax now matches a petrol car at £200. As a company or salary-sacrifice car the 4% BIK rate makes an EV almost unbeatable. The case weakens sharply if you depend on public rapid charging or drive very little, where a petrol car can work out just as cheap or cheaper once the higher purchase price and uncertain depreciation are taken into account. Model your own charging pattern before deciding.