Are Electric Cars Cheaper than Petrol Cars?

Persian Gulf Map

The Dependence On Fuel Imports Is An Addiction We Cannot Afford!  


All eyes were focused on the news headlines earlier this week, as the fate of over 66 million was being decided by a chosen few i.e. the ballot result of the next Prime Minister! 

However, another news story on the front page caught my attention: ‘Could Iran tensions push up petrol prices?’.  No doubt, the choice of the next Prime Minister is very relevant to our lives, but so is any potential increase in the cost of living, to include the cost of petrol or diesel.  

Before I elaborate on the better known advantages of battery electric vehicles (BEVs), I wanted to highlight a less recognised, but equally important advantage of the migration to zero emission transportation.  The ongoing crisis in Iran is an excellent case in point.  

The more we drive petrol and diesel cars (i.e. internal combustion engines), the greater is our dependency on energy imports and lower is our ‘national energy security’. Put another way, the greater our dependence on fuel imports, the higher the risk to our household income and savings. This is because fuel prices are influenced by a number of factors to include even international events that may impact geopolitical stability.

petrol car filling at a petrol station

Many distant events, like the ongoing diplomatic storm in the Strait of Hormuz can result in increased prices at our petrol pumps in the UK.  Such unpredictable and volatile events have a direct and material impact on our ‘ family wallet’ and everyday  disposable income.  The irony is that from the 66 million individuals that are impacted by such a crisis, no fewer than a handful could point the Strait of Hormuz on a world map! 


Renewable Energy and EVs Have Significant Potential To Increase National Energy Security And Lower Household Costs!  


The increased contribution of renewable energy i.e. green energy produced from solar, wind and hydro plants, have certainly helped to reduce the heightened risk to energy security.  But this is not enough.  The dependence on fuel imports has been further exacerbated due to the decline in North sea oil and gas production.     

There are currently 38 million vehicles on UK roads, with the significant majority being petrol and diesel internal combustion engines.  This has pushed the UK to a much higher level of reliance on imported energy, in fact, to the same levels as the 1970’s.  

More than a third of the UK fuel imports is crude oil, with a vast majority being sourced from countries like Algeria, Saudi Arabia, Indonesia, Libya, Qatar, UAE and Venezuela. I do not need to spell the obvious inference. Use your powers of deduction!  


Only Fools And Internal Combustion Engines


Petrol and diesel prices at UK filling stations have remained above 100 pence per litre over the past decade, and in fact come close to 150 pence per litre in 2012.  Today petrol and diesel prices average 130 pence per litre.  According to the AA, UK petrol prices in July are at their highest levels since 2014. 

UK drivers can ill afford another price hike in petrol or diesel prices.  The cost of filling a full tank of fuel (petrol and diesel) can vary anywhere between £50 to £80, depending on the vehicle and the fuel cost at the specific filling station.  

An average driver in the UK does 8,000 miles a year, with many doing significantly more.  One does not need a PhD in math’s to calculate the increased cost per year for every pence increase in diesel or petrol prices. The bad news does not end here for thirsty fuel internal combustion engines.   Continued inflation in fuel prices is now the norm.  

pound sterling coins

But it does not have to remain this way.  Be smart. Instead of giving your hard earned money to a host of international exporters, save it and use it on well deserved family vacations.  The solution is right under your nose.  Yes, it is electric transportation!


It Is Significantly Cheaper to Recharge An EV Battery Compared To Filling A Tank Of Fuel


Depending on where you live and the price of electricity, the cost of a full recharge of an EV battery is anywhere between £3 to £10.  This is a significant saving compared to petrol or diesel refueling. Moreover, if you source green energy, which I certainly recommend every EV owner does, then you are achieving a complete cycle of zero emission transportation!  But above all, you are divorcing yourself from external exporters i.e. you are not at their mercy in an uncertain world.  

In fact, as the UK migrates to mass adoption of electric transportation and continues to increase its generating capacity of renewables (onshore and offshore), the greater will be the national energy security and the more stable and lower our cost of road transportation.  

We at e-zoomed have partnered with Ecotricity, trailblazers in clean energy for home and electric vehicles.  Follow this link to get a quotation for green energy for your home and EV

Bottom-line, if you are a glutton for punishment, then petrol and diesel engines will do just fine. For the rest of us, who want a cheaper cost of running a vehicle and limited dependence on external geopolitical factors, then migrating to an all electric vehicles like the Nissan Leaf, Telsa Model 3 or Jaguar I-PACE is the best option.  

At least the next time you are driving an electric car, you will not need to go looking for the Strait of Hormuz!    


We at e-zoomed are more than happy to assist you with all your EV needs to include:

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Author

Ashvin Suri

Ashvin has been involved with the renewables, energy efficiency and infrastructure sectors since 2006. He is passionate about the transition to a low-carbon economy and electric transportation. Ashvin commenced his career in 1994, working with US investment banks in New York. Post his MBA from the London Business School (1996-1998), he continued to work in investment banking at Flemings (London) and JPMorgan (London). His roles included corporate finance advisory, M&A and capital raising. He has been involved across diverse industry sectors, to include engineering, aerospace, oil & gas, airports and automotive across Asia and Europe. In 2010, he co-founded a solar development platform, for large scale ground and roof solar projects to include the UK, Italy, Germany and France. He has also advised on various renewable energy (wind and solar) utility scale projects working with global institutional investors and independent power producers (IPP’s) in the renewable energy sector. He has also advised in key international markets like India, to include advising the TVS Group, a multi-billion dollar industrial and automotive group in India. Ashvin has also advised Indian Energy, an IPP backed by Guggenheim (a US$ 165 billion fund). He has also advised AMIH, a US$ 2 billion, Singapore based group. Ashvin has also worked in the real estate and infrastructure sector, to including working with the Matrix Group (a US$ 4 billion property group in the UK) to launch one of the first few institutional real estate funds for the Indian real estate market. The fund was successfully launched with significant institutional support from the UK/ European markets. He has also advised on water infrastructure, to include advising a Swedish clean technology company in the water sector. He is also a member of the Forbury Investment Network advisory committee. He has also been involved with a number of early stage ventures.

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