Electricity prices have risen sharply, yet charging an electric car is still cheaper than filling up at the pump – calculations by the green campaign group Transport & Environment have shown.

Although buying an electric vehicle remains more expensive than purchasing a petrol car, battery-powered and electric vehicles have long been more economical to buy and operate.

This is primarily because charging usually costs much less than refuelling. Buying an electric vehicle (EV) pays off after just a few years. That is an indisputable fact – or at least it was until very recently.

The energy crisis unfolding in Europe, sparked by the Russian invasion of Ukraine and threats to cut off gas supplies, is not only stoking fears of a cold winter but is also causing electricity prices to soar. The share of gas in electricity generation is particularly high. Conversely, oil supplies were less affected, and many European countries are heavily subsidising petrol and diesel.

In September, the average EU household had to pay 72% more for every kilowatt-hour of electricity than a year ago. Fuel prices at filling stations, boosted by generous government subsidies, have increased less: diesel by 36% and petrol by only 15%.

The unprecedentedly rapid rise in electricity prices has led to questioning the view that charging is cheaper than refuelling, leading to predictions that the transition to e-mobility will suddenly grind to a halt. Is the situation really that dramatic when you take all the facts into account?

The short answer is “no!”. Even in conditions of unprecedented market distortion, charging on average remains significantly cheaper than refuelling. The broader answer, however, is not so simple.

The role of fuel subsidies

One of the reasons for low diesel and petrol prices is fuel tax subsidies. After the Russian invasion of Ukraine and the initial surge in petrol and diesel prices, many countries began artificially reducing prices for end consumers using massive subsidies. EU countries will have spent more than 27 billion euros this year to reduce the price per litre, in some cases by more than 30 cents. In some countries, this has brought prices back down to pre-crisis levels or even lower.

Charging can be more expensive than petrol or diesel refuelling when using fast chargers located next to busy motorways. Conversely, slow AC charging, especially with a monthly or annual subscription, will cost only a fraction of what you pay to refuel a car even today. However, it is worth keeping in mind that according to European Commission data, 90% of electric cars are charged at home, at work or at other private charging locations. And this charging mode is usually the cheapest of all.

Filling up with petrol is still 80% more expensive than charging an electric car

An analysis by T&E of electricity prices for households in EU capitals (current prices in countries are not yet available) and weekly petrol and diesel prices shows that in September 2022, a 100 km trip in an average electric car cost about 6.50 euros – if the car is charged at home. Driving the same distance in a petrol car was on average 80% more expensive, and with diesel – 50% more expensive. According to T&E's calculations, charging an electric car at home or the office is still much cheaper than filling up at the fuel pump.

This is not the case in all countries

In Italy and Germany, where electricity prices are among the highest in Europe because these countries are highly dependent on gas, the differences are currently very small – at least for diesel compared to electricity. At the same time, in Spain, drivers can save up to 117% by charging rather than refuelling. In Poland – up to 170% by plugging into the power grid rather than refuelling.

Although our analysis is based on the average electricity price in each city, it is important to remember that electric cars are mostly charged during night hours outside of peak consumption. Consequently, for many consumers who have different day/night electricity tariffs, it is cheaper.

Renewable energy is cheaper in the long run

The current price hike is linked to Europe's excessive dependence on fossil fuels in general and on Russian gas in particular. The best way out of this situation would be a massive increase in the use of renewable energy sources. This would not only reduce electricity prices in the medium and long term, but would also be the only real way for Europe to ensure energy supplies in an increasingly unpredictable geopolitical environment.
Fabian Sperka is the Policy Manager for the green campaign group “Transport & Environment” (T&E)
The views expressed in this article are those of the author and do not in any way reflect the views of the Euronews editorial team