Motorists could save up to £1,000 annually by switching to an electric vehicle (EV) as petrol prices continue to rise amid the Iran war. Research from Autotrader and Zapmap reveals that EV fuel cost savings hit £960 in April, the highest since tracking began in November 2023.
EV Market Boost Amid Doubts
This milestone could revitalise the EV market, which has faced credibility concerns and sluggish demand relative to government targets. In the US, car manufacturers have written off billions in EV investments, with Ford writing down nearly $20 billion (£15 billion) and GM over $7 billion (£5 billion). Last month, consultancy EY reported that European and US car companies had written off £50 billion in EV projects in 2025. EY manager Constantin Gall noted, “Many companies focused investments on growing markets and rapid EV ramp-up, but demand has proven weaker than forecast, especially in the US and Europe.”
UK Trends
In the UK, Autotrader reports that electric is now the most popular fuel type for new cars on its platform for the first time. EVs are also becoming more affordable, with 40 new models priced below £30,000. Over a quarter (26 per cent) of used EVs on Autotrader are now £15,000 or less. New EVs are generally cheaper than petrol equivalents when discounts and government grants are included.
Zapmap calculates annual fuel savings by comparing an 80/20 split of home and public charging with petrol prices. The average petrol price currently stands at 158p per litre, with diesel at 188p, according to the RAC. Although slightly below peak prices since the Iran war began, the RAC warns that rising wholesale prices will likely push pump prices up again soon.
Industry Perspectives
Paul Hyne of Lex Autolease said, “The EV conversation has evolved. Choice has expanded, technology has matured, and more drivers are experiencing electric vehicles as part of normal life. Financing one in eight EVs on UK roads gives us a front-row view of that progress.” The average range of new EVs now exceeds 300 miles, up from 290 in January, with some models achieving 500 miles on a single charge. The Department for Transport reports 120,338 public charging points across the UK.
AA president Edmund King commented, “These facts on EV benefits are timely. With higher pump prices due to the Iran conflict, our AA Cars portal has seen a 33 per cent increase in used EV searches over the past month. Prices of EVs are falling, but drivers must also consider running costs, where substantial savings exist. Switching to electric can save £960 per year by charging 80 per cent at home and 20 per cent on public chargers. I estimate I have saved over £5,000 in fuel costs on my EV in five years.”
Melanie Shufflebotham, co-founder of Zapmap, added, “We’ve monitored public charging costs since November 2023. Most EV drivers enjoy total cost of ownership savings, especially as new EV prices continue to drop.” However, some large car makers note cultural resistance in certain areas, with one insider stating, “White van man does not want a green car.”
