Electric car vs petrol: what does ownership really cost?

The sticker price is just the beginning

When shoppers compare an electric vehicle to a petrol alternative, the upfront price is usually the first thing they notice. EVs often cost more to buy outright, but that gap narrows significantly once you account for what you spend over the years you actually own the car. Total cost of ownership is the only metric that tells the full story.

Fuel costs: where EVs pull ahead fast

Electricity is considerably cheaper per kilometer than petrol in most countries. A typical petrol car consuming 8 liters per 100 km at $1.80 per liter spends around $1,440 per year on fuel for 10,000 km of driving. An equivalent EV using 18 kWh per 100 km at $0.25 per kWh spends roughly $450 for the same distance. That is a saving of nearly $990 every year, just on energy.

• Home charging overnight is the cheapest option for most EV drivers
• Time-of-use electricity tariffs can cut charging costs by up to 40 percent
• Public fast chargers are more expensive but still usually cheaper than petrol
• Solar panels combined with home charging can reduce energy costs to near zero

Maintenance: fewer moving parts, fewer bills

A petrol engine has hundreds of moving parts, many of which wear out and need replacement. EVs have far fewer components in the drivetrain, which means lower servicing costs over time. Studies suggest EV owners spend around 30 to 40 percent less on maintenance annually compared to petrol car owners.

Depreciation and resale value

Historically, EVs depreciated faster than petrol cars, partly due to concerns about battery longevity. That trend is shifting as battery technology matures and consumer confidence grows. Some popular EV models now hold their value comparably to petrol equivalents, especially in markets with strong used EV demand.

Insurance differences

EV insurance premiums tend to be slightly higher than petrol equivalents because the vehicles cost more to repair after accidents, and specialist parts can take longer to source. However, the gap varies considerably by insurer and region. Shopping around is especially important for EV owners.

The bottom line over five years

For many drivers who cover average distances, an EV becomes cheaper than a comparable petrol car within three to five years when total costs are added up. The break-even point depends on your local electricity price, petrol price, annual mileage, and the size of any government incentives available to you. Use a calculator to model your specific situation rather than relying on averages.