Now Is the Time to Go EV: Save up to £256 per Month on Fuel
As conflicts in the Middle East continue with growing uncertainty of an end, fuel prices have rocketed. The UK average for petrol has reached 158.16p, while diesel sits at 191.31p per litre¹ – so now is the time to consider whether to switch to an electric vehicle.
While electric vehicles, or EVs, might seem expensive upfront, the truth is that the cost of running an EV has never been cheaper. When paired with an off-peak or dedicated EV electricity tariff, you could save as much as £256 per month on fuel costs alone.²
And the savings don’t stop there – lower maintenance costs and lower taxes mean that buying an EV is a viable option for many drivers.
So, if you’re considering switching to an EV from an internal combustion engine (ICE) vehicle, here’s a breakdown of the savings you can make from taking the step into emission-free driving.
Save £100s on fuel with a dedicated EV electricity tariff
With fuel prices rising by 35% since the Iran War began on 28th February, the cost of filling up your tank is the highest it’s been since July 2022. But with an EV, you could save hundreds of pounds per month.
Switch your home electricity tariff to a time-of-use tariff that charges lower night-time electricity prices, and you’ll maximise the running costs of an EV compared to an ICE.
Typical off-peak electricity prices start at 7p per kWh, meaning that if you travel 12,000 miles per year and you switch from a diesel vehicle with a fuel economy of 30 MPG to an EV with an efficiency of 2.1 miles per kWh, you could save £256 per month.
If you switch from a petrol vehicle with the same other variables, the saving is still a huge £206 per month.
While the costs of fuel are high right now, the savings are greater than ever – but even in a more settled climate where the cost of fuel sits back at the yearly average, you could still save as much as £180 per month.
To get a more accurate idea of the cost savings of switching to an EV, use a manufacturer’s calculator. The Kia Electric Car Charging & Running Cost Calculator allows you to input your current car’s fuel economy and compare it against the efficiency of their EVs, so you can see how much you could save by making the switch.
Save £1,687 on servicing and maintenance
EVs have fewer moving parts, which means there’s less to go wrong. That also means that they have longer service intervals than ICE alternatives, so you will pay less for maintaining your EV.
According to This is Money, the average five-year servicing outlay for an ICE model is £5,709, while EV owners pay just £4,022 – a 29% saving.
With no need for oil changes, less frequent brake replacements due to regenerative braking, and fewer unexpected repair costs, these savings are not to be grumbled at.
Pay less tax
Although EVs are no longer exempt from road tax, you’ll still pay less vehicle tax than you would if you purchased a new ICE model today.
If you purchase an EV that was registered on or after 1st April 2025, you’ll pay just £10 in the first year. The lowest price you’d pay for an ICE model is £115, as the first year’s tax is based on emissions.
Plus, if you benefit from a company car, you’ll save hundreds in benefit-in-kind tax (BiK). Under current rules, you could have to pay up to 37% of an ICE model’s list price in tax, whereas the cost for EVs is 4%.
For example, if a vehicle’s list price is £35,000 and has an ICE, you could pay:
| Taxpayer type | % of list price taxed (BiK) | Income tax rate | Annual BiK tax calculation | Cost per year |
|---|---|---|---|---|
| Basic rate | 37% | 20% | £35,000 × 37% × 20% | £2,590 |
| Higher‑rate | 37% | 40% | £35,000 × 37% × 40% | £5,180 |
However, if it’s an EV, the figures look much different:
| Taxpayer type | % of list price taxed (BiK) | Income tax rate | Annual BiK tax calculation | Cost per year |
|---|---|---|---|---|
| Basic rate | 4% | 20% | £35,000 × 4% × 20% | £280 |
| Higher‑rate | 4% | 40% | £35,000 × 4% × 40% | £560 |
Note: All figures are based on a vehicle list price of £35,000 and current Benefit‑in‑Kind (BiK) tax rates.
If you’re already driving an ICE company car, it’s a no-brainer to ask your employer to switch to an EV. It’s a win for them too – they can make significant savings on National Insurance by allowing you to lease an EV via a Salary Sacrifice scheme.
So, while fuel prices are so high, it makes sense to make the change to an electric vehicle. But even if fuel prices stabilise, the cost savings can still be significant.
Whether you already know which vehicle you’d like or you need some guidance and support, find your nearest Holden location and our friendly team will help you find the right EV to maximise your savings.
¹: RAC latest UK petrol and diesel prices
²: Based on a diesel car with a fuel economy of 30 MPG, an annual mileage of 12,000 and an off-peak electricity tariff of 7p per kWh
