Rising fuel prices: is an electric car cheaper than petrol in 2026

If your latest visit to the petrol station has made you rethink your next car, electric deserves a closer look. But the biggest question is where you will charge it.

Electric cars can offer a compelling alternative to repeated fill-ups, particularly when affordable home charging fits your routine. For drivers relying on expensive rapid chargers, the calculation can look very different. This month, we compare the numbers and explain what to check before choosing an electric lease.

Why are drivers considering electric now?

Government figures put average UK petrol prices at 175.28p per litre and diesel at 200.04p for the week commencing 12 October 2026. At those prices, adding 55 litres costs approximately £96.40 for petrol or £110.02 for diesel. These are national weekly averages; your local forecourt may charge differently. [1]

Electric demand is growing too. SMMT reports that 99,201 new battery electric cars were registered in September, accounting for 28.3% of the new-car market. Registrations rose 36.3% compared with September 2025. [2]

Our view is that this makes the current fuel-price squeeze a useful moment to review your options. It does not mean changing a perfectly suitable car immediately will save money: the cost of switching matters too.

Electric vs petrol: what does each mile cost?

There is no single “electric-car running cost”. Your vehicle’s efficiency and the electricity price you pay both matter. Zapmap’s September 2026 index reports average pay-as-you-go prices of 54p/kWh for standard public charging and 79p/kWh for rapid and ultra-rapid charging. Individual networks, subscriptions and locations differ. [3]

The illustration below compares 10,000 miles a year. The home electricity prices are example assumptions, not quoted tariffs or national averages.

Players Cars calculations using sources [1] and [3]. EV assumption: 3.5 miles per battery kWh, with 10% extra electricity added as a charging-loss allowance. This is a generic example, not a forecast for the three models below. Petrol/diesel: litres per mile = 4.54609 ÷ UK mpg. EV: electricity price ÷ 3.5 × 1.10. Annual amounts are rounded to the nearest pound; per-mile figures to one decimal place. Excludes charger installation, standing charges, parking, subscriptions, insurance, tax, servicing and vehicle costs.

For example, an EV using 80% electricity at the illustrative 8p home rate and 20% at 79p rapid chargers would cost approximately £698 for 10,000 miles. That is around £1,073 less in energy costs than the petrol example, before any difference in vehicle costs.

Can electric work without a driveway?

It can, but start with the charging plan. Check which chargers are close to home or work, what they actually cost, whether you can park there and how long you can stay. Energy Saving Trust recommends checking public prices and comparing electricity tariffs; off-peak home charging can reduce costs. [4]

Someone with reliable workplace charging may have a very different experience from someone making a special journey to a rapid charger every week. Before ordering, map out a normal week and one of your regular longer trips. Check the stops, charging time and cost together.

If home charging is possible, obtain an installation quote and compare the whole electricity tariff, including daytime rates and standing charges. A cheap overnight headline rate should work for your household as well as your car.

What about business drivers and company-car tax?

For 2026/27, the company-car benefit percentage for a zero-emission car is 4%. This percentage is used to calculate the taxable benefit; it is not a 4% income-tax rate or a percentage of your monthly rental. [5]

As a simplified example, a £40,000 taxable list price multiplied by 4% produces a £1,600 annual benefit. At a 20% marginal income-tax rate, that is £320 a year, or approximately £26.67 a month; at 40%, approximately £53.33 a month. This assumes a full year of availability and no adjustments.

Personal contract hire does not itself create the same company-car benefit calculation. Business structure, private use and other circumstances affect the comparison, so ask your accountant to assess your position.

Three electric cars to put on your shortlist

Look beyond the monthly rental

Compare the initial rental, all subsequent rentals, fees, mileage allowance, maintenance and return conditions. Check whether VAT is included, and compare equivalent terms. A lower advertised monthly figure can come with a larger upfront payment.

Also obtain an insurance quote and allow for any cost of leaving your current agreement. Electric cars are not universally exempt from vehicle tax: the exemption ended in April 2025, and the applicable charge depends on registration and other factors. Check what your lease includes. [6]

Fuel savings can make a strong contribution to your budget. They should sit alongside these costs when you decide whether to switch.

Is electric the way forward for you?

If you can charge affordably, your usual journeys fit the car and the complete monthly budget works, an EV deserves serious consideration. If charging is inconvenient or your current car is economical to keep, it may make sense to wait or compare other powertrains.

At Players Cars, we can help you compare suitable vehicles and lease structures using your annual mileage, upfront budget and charging arrangements.

Quick questions

Is an electric car always cheaper to run than petrol?

No. The energy comparison depends on the car’s efficiency and your charging price. The table illustrates why home and rapid public charging can produce very different results.

Can I lease an electric car for personal use?

Yes. Personal contract hire and business contract hire are different arrangements. Ask for a quote appropriate to you, with the initial rental, mileage, fees and VAT treatment clearly stated.

Do these calculations show the savings I will make?

No. They are worked examples with explicit assumptions. Use your actual fuel economy, electricity tariff, driving pattern and vehicle costs for a personal comparison.

Sources and calculation date

Research checked on 16 October 2026. Prices and tax rules can change. No claim of a nationwide fuel shortage is made.

1. DESNZ: weekly road fuel prices, week commencing 12 October 2026, published 13 October.
2. SMMT: September 2026 registrations, published 5 October 2026.
3. Zapmap Charging Price Index, September 2026 data, updated 7 October. Public-price inputs are attributed to Zapmap; the worked comparison is our calculation.
4. Energy Saving Trust: charging electric vehicles.
5. HMRC: company-car appropriate percentages, 2026/27 table.
6. GOV.UK: vehicle tax for electric vehicles.
7. CUPRA: Raval model information. Exact advertised variant supplied by Players Cars.
8. Renault: Renault 5 versions and battery options.
9. BYD UK: Seal configurator. Exact lease description supplied by Players Cars.