Electric Car Charging Now Cheaper Than Petrol Thanks To Price War

Electric vehicle (EV) owners across the UK are set to benefit from a dramatic price war among charging networks that has for the first time put running costs below those of petrol vehicles. With a combination of falling wholesale electricity prices, increased market competition, and tariff innovation, the balance is tipping decisively in favour of EV adoption – especially for those unable to charge at home.

BeEV, the charging network operated by Octopus Energy, has introduced a monthly membership priced at £999 which offers a flat rate of 39p per kilowatt hour (kWh) for charging at any of their 800 rapid or ultra rapid bays. This undercuts the market average for public rapid charging, which in September 2025 stood at 76p per kWh according to Zapmap’s pricing index. The result for consumers is a potentially substantial year on year saving, especially for high mileage motorists.

Those who opt for the annual subscription with Ionity, the ultra rapid pan European network backed by several major manufacturers, pay £8699 per year and enjoy a unit rate of 43p per kWh. Ionity’s lower annual fee makes it a cost effective solution for those with modest charging needs, but heavier users will see more value from BeEV’s lower kWh rate. Analysis indicates BeEV becomes the better choice once a driver reaches approximately 822 kWh of consumption each year, equal to around 2900 miles based on an average efficiency of 35 miles per kWh.

The average petrol driver spends £760 per year on fuel. Comparatively, a typical EV driver who relies entirely on public charging and subscribes to BeEV would now spend only around £694 per year, a concrete saving that directly reverses a longstanding disadvantage noted for EV owners without access to home chargers. Previously, lower home energy tariffs were the preserve of those with a driveway or off street parking – a group that excludes more than nine million UK households.

Industry analysts attribute this price competition in part to the government’s ambitious target for 80 per cent of new cars to be electric by 2030. Charging operators from established names like BP Pulse and InstaVolt to technology leader Tesla are cutting rates and introducing tiered member tariffs, with some rapid or ultra rapid rates dipping into the mid 40p per kWh range and special offers for off peak charging.

Home charging continues to offer the lowest possible cost, averaging 2635p per kWh under the latest Ofgem cap, and dropping as low as 6p per kWh with off peak rates. This translates to running costs of roughly 2p per mile for home chargers compared to 11 to 12p per mile with the best current public tariffs. To further level the playing field, there are calls for government to cut the VAT on public charging from 20 per cent to align with the 5 per cent rate on domestic energy, a move which industry voices suggest would drive even greater uptake of zero emission vehicles.

This rapid shift in market dynamics marks a significant moment for prospective EV buyers. As networks race to win over drivers without home charge facilities, the traditional barriers to electric car adoption are fast disappearing.