Electric cars are now £486 cheaper per year to run than petrol vehicles, according to exclusive data from Compare the Market seen by Express.co.uk. The average annual running cost for an electric vehicle (EV) is £1,320, compared to £1,806 for a petrol model. This gap has widened by £228 since 2025, driven by rising fuel costs and falling electricity prices.
Fuel Costs Drive the Gap
The cost of petrol has surged due to conflict in the Middle East, adding £116 to annual running costs for petrol car owners compared to 2025. Petrol drivers now spend an average of £963 per year on fuel, up from £814. In contrast, EV owners spend just £483 on charging, a drop of £39 from £522 last year, thanks to a lower energy price cap between June 2025 and June 2026.
Insurance and Other Costs
Insurance premiums have also fallen for both vehicle types. EV insurance averaged £587 per year in 2026, down from £660, while petrol car insurance dropped from £626 to £593. Vehicle excise duty (VED) and MOT costs remained unchanged at £195 and £55 respectively for both powertrains.
Sam Wilson, an expert at Compare the Market, told Express.co.uk: “EV owners will be pleased to know that electric vehicles remain significantly cheaper to run than petrol cars on average. While changes to the energy price cap may increase charging costs in the coming months, the overall cost of owning and running an EV continues to compare favourably with petrol vehicles.”
Impact on EV Adoption
The news is a boost for Britain's two million electric car owners and could encourage further take-up of battery models. Wilson added: “Our research shows that motorists comparing quotes through Compare the Market are seeing lower insurance costs for both EVs and petrol vehicles than they were a year ago. With prices and levels of cover varying between insurers, it’s worth shopping around before renewing rather than automatically accepting your renewal quote.”
Detailed Cost Breakdown
For electric cars, the average annual costs in 2026 are: insurance £587, charging £483, VED £195, MOT £55, totalling £1,320. In 2025, these were £660, £522, £195, and £55 respectively, totalling £1,432. For petrol cars, 2026 costs are: insurance £593, fuel £963, VED £195, MOT £55, totalling £1,806. In 2025, they were £626, £814, £195, and £55, totalling £1,690.
