Pump Anxiety Replaces Range Anxiety as Fuel Prices Surge
A dramatic rise in demand for electric vehicles, triggered by the spike in petrol prices, shows that drivers are now more concerned about refuelling costs than how long an EV's charge will last, according to new findings. The latest AA EV Readiness Index indicates that the long-standing issue of 'range anxiety' is now being replaced by 'pump anxiety'.
With escalating fuel prices due to the conflict in the Middle East, searches on the AA Cars website for second-hand electric cars shot up by 78% between March and May compared to the previous three months. The index's quarterly assessment showed people were more prepared to embrace electric vehicles, with their financial advantages for those able to charge at home.
Petrol Prices Spike Nearly 20% in a Quarter
Petrol hit 159.6p per litre at the close of May - nearly a 20% rise from the previous quarter examined in the index. The AA found that drivers charging their EVs at home can now travel for approximately 67% less per mile than those with comparable petrol vehicles - an improvement on the 57% saving recorded in the first quarter. It calculates this is a minimum saving of £20 for every 200 miles covered.
AA president Edmund King said: "Range anxiety has shifted to pump anxiety as global petrol and diesel prices have rocketed since the Iran conflict began." Referring to a common concern of how far an EV can go on a single charge, he said: "For years, some drivers have been put off EVs by real or perceived range anxiety. But this latest Index suggests the bigger concern for many households is becoming pump anxiety. When global fuel prices rise sharply, drivers feel it immediately at the forecourt. EV drivers, particularly those with access to home charging, have been better insulated from that volatility."
Used EV Market Sees Surge in Demand
The increase in interest seems to focus on the second-hand market, with buyers looking for older, more budget-friendly models. King said searches for used electric vehicles on the AA Cars site had risen by "more than 75% in the last three months". Most searched-for on the site were the Nissan Leaf, Tesla Model 3 and Kia Niro, which all have been available for more than seven years.
King added: "The used EV market is becoming a critical part of the transition. Drivers are not only looking at new technology; they are looking for value, familiarity and lower running costs." Despite the growing interest, the motoring body thinks electric cars still have big hurdles to overcome before most people give them serious consideration.
Upfront Costs and Public Charging Challenges Remain
Operating costs may appeal but the upfront cost of many new EVs is greater than equivalent petrol vehicles. The AA also found that used EVs, having been around 10% cheaper than petrol in the first quarter, became 3% dearer by the second quarter as demand grew. And there is a big difference between charging cars at home, on cheaper electricity rates, and using public facilities. Ultra-rapid public chargers for electric vehicles were still around 15% more expensive per mile than petrol, although that was quite a drop from the 35% of the previous quarter.
King said: "The benefits are still uneven. Drivers without driveways or access to cheaper overnight tariffs are not getting the same savings. Unless public charging becomes more affordable and accessible, the EV transition risks becoming a two-speed market."
Charging Infrastructure and Reliability Improve
AA data shows 121,262 charging points are now operational, around 40% of the Government target of 300,000 by 2030. EV reliability issues appear to be lessening, with running out of charge accounting for just 1.2% - down from 1.5% - of AA call-outs to EVs during the quarter. And 88.4% of EV breakdowns, compared with 84.6% of petrol and diesel cars, were solved at the roadside.
While its findings indicate that the recent spike in fuel costs could temporarily accelerate interest in electric vehicles, the AA says this enthusiasm might wane if international oil markets settle, although it stands as a reminder that such dependency can mean economic uncertainty.
