Friday, October 11, 2024
Home Electric Cars Electric cars now more costly than petrol for long journeys

Electric cars now more costly than petrol for long journeys

The cost of charging an electric car on the road has soared by nearly 60pc in eight months, making the vehicles more costly to run on long journeys than petrol motors.

Rapid charge points used by motorists topping up on long drives are now nearly £10 more expensive than filling up a car with petrol, analysis by motoring body the RAC revealed.

Alongside surging energy prices, a key reason behind the cost is that VAT is charged at 20pc on public networks, compared to 5pc for domestic energy use.

Charging an electric car at home is still much cheaper than buying a tank of fuel at the pumps, but many drivers are unable to install a charger at home because they do not have off-street parking.

It comes as new petrol and diesel cars are due to be banned from Britain’s roads within years as the Government pushes to reach net zero by 2050.

Yet critics say the tax levied on public electric vehicle charge points poses a threat to the Government’s ambitions.

Some believe ministers are reluctant to take the “obvious” step of setting VAT at 5pc across the board because electric vehicles are seen as elitist.

The RAC said it costs an average of 70.32p per kilowatt hour to rapidly charge a car, up 58pc from May (44.55p) and 11pc from September (63.29p).

The increase has been driven by rising electricity costs, although another reason is the infrastructure needed to safely deliver large amounts of electricity.

As a result, charging to cover 484 miles on a public network costs £92.69, which is more expensive than filling a 55-litre petrol car to go the same distance at £83.03.

Using ultra rapid charging increases the cost to £98.59 – £15.51 more than filling a petrol car, and £2.91 more than a diesel.

Public charging is also more than double the price of domestic charging, which comes to about £44.74.

While most drivers can charge their cars at home, around 16pc do not have private parking spaces, according to campaign group FairCharge.

It predicted that this will eventually apply to four in 10 drivers as more people opt for electric vehicles ahead of the ban on petrol and diesel car sales from 2030.

Simon Williams, of the RAC, said: “Our concern is that the extremely high energy prices… have the effect of putting people off using public EV chargers of all speeds altogether.

“Cutting the level of VAT on electricity sold at public chargers to 5pc to match what people pay at home would be one way of keeping prices under control and would show the Government remains committed to doing everything it can to get more drivers to go electric. ”

FairCharge estimated that bringing VAT on public networks down to 5pc would cost the Exchequer a “relatively small” £37.3 million. However, this would rise if the uptake of electric vehicles increased in the future.

A spokesman said: “It’s most likely to affect those living in terraced houses and apartment blocks – often the lower-income households – so it’s something that we feel is really unfair.

“There’s a perception that electric vehicles are for the elite, but our point is that we’re trying to widen access to electric vehicles. I think there’s a bit of reluctance from the Government.”

She added that the tax discrepancy could deter poorer families from electric cars and even force the Government to push back its net zero target from 2050.

Ginny Buckley, founder of car review website Electrifying.com, warned that the VAT gap meant that “costs aren’t adding up” for drivers without off-street parking.

She said: “Unfortunately, this is happening at a crucial point in the electric vehicle transition where mainstream car buyers need to be brought along on the journey.

“The government needs to step in and take decisive action to ensure that price parity is reached between public and private charging. Reducing the 20pc VAT rate currently imposed on public charging to 5pc seems like an obvious way to do this.”

Data from the Society of Motor Manufacturers and Traders (SMMT) shows the number of electric vehicles on the road increased by 40.2pc in the year to December 2022.

RELATED ARTICLES

Most Popular

Recent Comments