Are electric cars still cheaper to run than petrol and diesel?

Even if electric cars still cost more to buy than petrol cars, battery-electric vehicles have long been cheaper overall to own and run.

This is largely because recharging has typically cost much less than refuelling, so owning an electric vehicle (EV) would pay off after a couple of years. 

This is an irrefutable fact — or at least it was until recently.

Europe’s ongoing energy crisis, fuelled by Russia’s invasion of Ukraine and threats to cut off gas supplies, not only stirred up fears of cold winters but had also sent electricity prices sky-high due to the high share of gas in power generation.

Oil supply, on the other hand, was less affected, and many European countries have been heavily subsidising petrol and diesel.

In September 2022, the average EU household had to pay a staggering 72% more for each kWh of electricity than a year before. 

At the pump, aided by governments’ generous subsidies, fuel prices increased less at the same time: diesel by 36% and petrol by only 15%.

The unprecedented surges in electricity prices have thrown into question the notion that recharging is cheaper than refuelling, and some were already predicting that the transition towards e-mobility would come to a sudden halt.

But looking at the facts, is the situation really that dire?

The short answer is no. Even in the midst of unprecedented market distortion, recharging is, on average, still significantly cheaper than refuelling.

The long answer is less straightforward.

One reason for low diesel and petrol prices is fuel tax subsidies. 

In the wake of the Russian invasion of Ukraine and the initial spike in petrol and diesel prices, many countries started to artificially reduce the price for end consumers through massive subsidies. 

EU countries were