Petrol is averaging 173.5p a litre and the Ofgem price cap puts home electricity at 26.32p per kWh. That makes the EV vs petrol cost per mile gap wider in 2026 than it has been for years. Where you charge matters more than which car you drive, though. Here are the real per-mile numbers, worked out the way First Vehicle Leasing runs them for customers.
Key Takeaways
- At the UK average of 173.46p a litre (week of 28 September 2026), a 45 mpg petrol car costs about 17.5p a mile in fuel.
- An EV doing 3.5 miles per kWh costs about 7.5p a mile on the capped home rate. On an off-peak tariff at an example rate of 8p per kWh, it's about 2.3p a mile.
- Public charging closes the gap or reverses it. At Zapmap's August 2026 averages it's about 15.4p a mile on standard chargers and 22.0p a mile on rapid chargers.
- From April 2028, electric vehicle excise duty (eVED) is planned to add 3p a mile for EVs. Home-charged EVs would still cost far less per mile than petrol.
- Company car drivers pay 4% Benefit in Kind (BIK) tax on an EV in 2026/27. A petrol car is taxed at roughly 15–37%.
How Much Does Petrol Cost Per Mile in 2026?
A typical 45 mpg petrol car costs about 17.5p a mile to fuel in October 2026. That's based on the government's weekly average of 173.46p per litre of unleaded for the week of 28 September 2026, which is roughly £7.89 a gallon. A thirstier 40 mpg car costs closer to 19.7p a mile.
Manufacturers quote economy in miles per imperial gallon, but we buy fuel by the litre. To get your own figure, multiply the price per litre by 4.546 (the litres in a gallon), then divide by your real-world mpg. Prices change every week. Unleaded has risen by more than 20p a litre since early July, and you can track it in the government's weekly road fuel price statistics.
The Peugeot 208 makes a fair test case because it comes as a petrol car and as the electric E-208. That way you're comparing the same body, size and spec.
How Much Does It Cost to Charge an EV Per Mile?
Divide the price you pay per kilowatt-hour (kWh, the unit of energy on your electricity bill) by your car's miles per kWh. At the October 2026 Ofgem cap of 26.32p per kWh and a realistic 3.5 miles per kWh, charging at home costs about 7.5p a mile. Off-peak EV tariffs bring that down a long way.
The cap covers 1 October to 31 December 2026. It already includes the government's removal of VAT from domestic electricity, which runs until 31 March 2027. Smart EV tariffs sell overnight electricity well below the cap. At an example rate of 8p per kWh, a mile costs about 2.3p.
Public charging costs more. Zapmap's August 2026 average pay-as-you-go prices were 54p per kWh on standard chargers (up to 49kW) and 77p per kWh on rapid and ultra-rapid chargers (50kW and above). HMRC's figures point the same way. Its Advisory Electricity Rate (AER), the rate employers use to repay business mileage in electric company cars, is 7p a mile for home charging and 15p for public charging from 1 September 2026. Our guide on how to charge your electric car explains the different charger types.
EV vs Petrol Cost Per Mile: Which Is Cheaper?
Charged at home, an EV costs far less per mile than petrol in 2026: roughly 2.3p to 7.5p a mile against 17.5p. Relying on public chargers changes that. Standard public charging works out a little cheaper than petrol, but rapid charging at 22.0p a mile costs more.
| Fuel or charging method | Price | Cost per mile | Per 10,000 miles | Per mile with eVED (from April 2028) |
|---|---|---|---|---|
| Petrol, 45 mpg | 173.46p/litre | 17.5p | about £1,750 | 17.5p (no eVED) |
| EV, home off-peak (example rate) | 8p/kWh | 2.3p | about £230 | 5.3p |
| EV, home on the price cap | 26.32p/kWh | 7.5p | about £750 | 10.5p |
| EV, 80% home off-peak / 20% rapid | Mixed | 6.2p | about £620 | 9.2p |
| EV, public standard (3–49kW) | 54p/kWh | 15.4p | about £1,540 | 18.4p |
| EV, public rapid (50kW+) | 77p/kWh | 22.0p | about £2,200 | 25.0p |
All the EV figures assume 3.5 miles per kWh. A little energy is lost between the socket and the battery, so real home-charging costs come out slightly higher. If the gap in your situation looks convincing, our petrol, diesel or electric guide covers the practical side.
Why Doesn't Real-World EV Efficiency Match the WLTP Figure?
The official economy figure comes from the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). It's a lab test run without the heater or air conditioning, so real-world efficiency is usually lower, especially in winter and at motorway speeds. Use your trip computer, or a cautious 3 to 3.5 miles per kWh, rather than the brochure number.
The units don't help. Some cars show kWh per 100 miles and others show miles per kWh. To convert, divide 100 by the figure, so 28.6 kWh/100 miles is the same as 3.5 miles per kWh. Don't confuse kWh, which measures energy (how much the battery holds), with kW, which measures power (how fast it charges or accelerates). Range sums should also use usable battery capacity rather than gross capacity, because manufacturers keep a buffer back to protect the battery.
Smaller, lighter EVs generally use less energy per mile than big SUVs. That's why compact models like the Renault 5 and Kia EV3 are sensible choices if cost per mile is your main concern.
Will I be approved?
Five questions, no sign-up, and an honest answer before you apply for anything.
Check my eligibilityWhat Other Running Costs Should You Compare?
Fuel is only part of the cost. Vehicle Excise Duty (VED, or road tax), servicing, tyres, insurance and, for company car drivers, BIK tax all change the total. EVs usually come out ahead on servicing and tax. Insurance and tyre wear can sometimes cost more.
Servicing
EVs have far fewer moving parts and need no oil changes. Regenerative braking, where the motor slows the car and recovers energy, also reduces brake wear.
Tyres and insurance
Extra weight and instant torque can wear tyres faster, and insurance groups vary a lot between models. Get quotes before you commit.
| Tax (2026/27) | Electric | Petrol |
|---|---|---|
| First-year VED | £10 | Set by CO2 emissions |
| Standard VED from year two | £200 | £200 |
| Expensive car supplement (years 2–6) | £440 if list price is over £50,000 | £440 if list price is over £40,000 |
| Company car BIK | 4% | Roughly 15–37%, depending on CO2 |
The DVLA collects VED, and the full bands are in the GOV.UK vehicle tax rate tables.
How Will the 3p-Per-Mile eVED Change the Sums From 2028?
Electric vehicle excise duty (eVED) is planned to start in April 2028. It would charge 3p a mile for battery EVs and 1.5p for plug-in hybrids, on top of standard VED. A home-charged EV on the price cap would go from 7.5p to 10.5p a mile, which is still well below petrol's 17.5p.
The government announced eVED at the 2025 Budget and confirmed its design in July 2026. Rates are due to rise with inflation from 2029–30, and the legislation is still being finalised, so treat these figures as provisional. At 10,000 miles a year, eVED comes to £300. The driver it affects most is someone who charges only on standard public chargers: 18.4p a mile would then cost slightly more than a 45 mpg petrol car. Lease a car for three years from today and eVED would apply only to the final months of your term.
Does Leasing Change the EV vs Petrol Cost Equation?
Leasing doesn't change what each mile costs, but it removes the two worries EV drivers raise most often: depreciation and battery health. Your monthly rental is fixed, road tax is included for the term, and what the car is worth at the end is the funder's risk, not yours.
A lease rental covers the gap between what the car costs and its forecast value at the end of the term, plus interest charges. First Vehicle Leasing buys in volume, which lowers the starting cost while the forecast end value stays the same. If used EV values fall further than expected, that's the funder's problem. You can also add a maintenance package to fix your servicing costs for the term. To check whether a quote is good value, our lease comparison guide explains how.
Is the EV Saving Bigger for Company Car Drivers?
Yes. For company car drivers, and anyone offered salary sacrifice, tax usually matters more than fuel. Under HMRC's company car rules, a fully electric car is taxed at 4% BIK in 2026/27. That rate is due to rise to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.
Take a £40,000 car as an example. At 4%, the taxable benefit is £1,600, so a basic-rate (20%) taxpayer pays £320 a year. The same list price on a petrol car at 30% gives a taxable benefit of £12,000, or £2,400 a year in tax. Our experts recommend looking at salary sacrifice first if your employer offers it.
Should You Choose an EV or Petrol? A Five-Point Checklist
Whether you can charge at home decides most of it. I once stayed at a lovely North Yorkshire inn whose receptionist proudly told me the nearest charge point was only nine miles away. Access really does vary that much. Find the line below that fits you:
Match your charging to the numbers
- Home charger plus an off-peak tariff: go electric. It's about 2.3p a mile against 17.5p, and still only about 6.2p if one charge in five is on a rapid charger.
- Home charging on a standard tariff: an EV still wins at about 7.5p a mile. Switching to an EV tariff saves more.
- No home charging, standard public chargers: about 15.4p a mile is only slightly cheaper than petrol, and costs more once eVED arrives (18.4p). Look for workplace charging first.
- Mostly rapid charging: at about 22.0p a mile, an efficient petrol or hybrid car will probably cost less to run.
- Company car or salary sacrifice: the 4% BIK rate usually makes an EV the cheaper choice, whatever your charging setup.
Related guides
Should I Lease an Electric Car? An Honest UK GuideWhat Does It Cost to Charge an EV? UK Costs ExplainedDo I Need a Home Charger to Lease an EV?Business Van Leasing Explained: Tax, VAT and CostsView all guidesFrequently Asked Questions
Lock In Lower Running Costs
First Vehicle Leasing has arranged vehicle leases for over 25 years. We're authorised and regulated by the FCA and a BVRLA member. Tell our team how and where you'd charge, and we'll help you find the EV, or the efficient petrol car, that costs least for the way you drive. Call 0333 003 3325.
Sources
- Weekly road fuel prices - Department for Energy Security and Net Zero (GOV.UK)
- Vehicle tax rate tables - GOV.UK
- Advisory fuel rates - HMRC (GOV.UK)
Written by Andy Bell, First Vehicle Leasing.
