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Wednesday, 3 December 2025

Petrol Cars Now Cheaper to Run Than EVs After Tax Raid (Unless You Have a Driveway)

 Rachel Reeves’s new pay-per-mile tax will make petrol cars cheaper to run than electric vehicles unless drivers have a driveway and can charge them at home. The Telegraph has the story.

Motorists forced to rely on public chargers will be left paying an estimated £290 more per year in running costs and taxes for their EVs compared to a petrol alternative, according to electric car advice site Electrifying.com.

Home charging is now a ‘make or break factor’ for electric car affordability following the planned introduction of Rachel Reeves’s pay-per-mile tax, which is intended to replace fuel duty.

The Chancellor confirmed last week that EVs will be subject to a 3p-per-mile levy starting in 2028.

In the wake of the changes, Electrifying.com compared the cost of owning and operating an electric Volkswagen ID.3 with that of a petrol Volkswagen Golf, based on driving both for about 8,000 miles per year.

The electric car’s annual running costs would average about £898, compared with £1,198 for a petrol Volkswagen Golf, based on current prices.

However, drivers without a garage or driveway who rely solely on public charging would see their annual running costs rise sharply, to around £1,490. Approximately 30% of British households do not have access to off-street parking.

Drivers who can access a cheaper overnight rate when charging at home could enjoy substantially lower running costs, at £558.

Many drivers will likely use a mix of public and private charging, meaning they will be charged up to 60p per kilowatt hour (kWh) on public chargers for at least some of their journeys.

Plug-in hybrids, meanwhile, which will be subject to a 1.5p per mile charge from 2028, would become more expensive to run than a petrol vehicle if they are not regularly charged at home....<<<Read More>>>...