Electric vehicles are now cheaper to buy than equivalent petrol and diesel models for the third consecutive month.

Many industry experts say it could represent the major tipping point in Britain’s transition away from combustion-engine cars.

With the Middle East conflict pumping up fuel prices, this could represent a real change in motorists’ buying habits.

Changing appeal

The latest market data suggests falling EV prices combined with soaring fuel costs are dramatically reshaping consumer attitudes, particularly following sharp rises in petrol and diesel prices linked to the escalating conflict involving Iran, Israel and the United States.

According to new figures from Autotrader, average new electric car prices have remained below petrol models for three months in a row, helped by manufacturer discounts, increased competition and government incentives.

Industry analysts say the development marks a potentially pivotal moment for the UK car market, where higher upfront purchase costs have historically been one of the biggest barriers to drivers switching to EVs

The data comes as motorists face rapidly rising fuel bills following disruption to global oil supplies caused by the conflict in the Middle East.

Average petrol prices in the UK have climbed to around 159p per litre, while diesel remains close to 185p per litre after recent spikes linked to instability around the Strait of Hormuz, one of the world’s most important oil shipping routes.

For many motorists, the economics of electric driving are now becoming increasingly difficult to ignore.

Record savings

Recent figures from Zapmap and Autotrader showed potential annual fuel savings for EV drivers reached a record £960 in April, the highest since records began in late 2023.

The calculation is based on a typical mix of home and public charging compared with average petrol and diesel fuel costs.

Public charging has also become increasingly competitive.

Analysis from industry body ChargeUK found that charging an EV using standard public chargers now costs less per mile than running a petrol or diesel car in many cases.

At average charging prices, EV drivers are estimated to pay around 15p per mile, compared with approximately 17p per mile for petrol and 17.5p per mile for diesel vehicles.

If EV owners rely on home charging, particularly on special, dedicated lower-tariff rates for EV charging, the difference increases dramatically.

Alongside this, maintenance and servicing costs for EVs are lower too.

Demand surging

The shift in affordability appears to be driving growing consumer interest.

Autotrader recently revealed that electric cars became the most popular fuel type for new car enquiries on its platform for the first time, accounting for 29% of all searches in April.

Across Europe, EV registrations rose sharply in recent months as drivers reacted to rising fuel prices and concerns over future energy security.

Reuters reported EV sales in Europe jumped 34% year-on-year in April following the latest fuel price increases linked to the Iran conflict.

Online marketplaces have also reported surging searches and enquiries for electric vehicles, particularly lower-cost Chinese brands entering the European market.

Turning point

Motoring and energy analysts say the current combination of falling EV prices and geopolitical fuel instability could permanently accelerate adoption.

The average advertised price of a new EV in the UK recently fell below that of a petrol car for the first time, with electric models averaging around £42,600 compared with more than £43,400 for petrol vehicles.

Experts say several factors are driving the shift:

  • increased manufacturer competition
  • government EV grants
  • pressure on carmakers to meet the Zero Emission Vehicle (ZEV) mandate targets
  • growing availability of lower-cost EVs
  • rising fuel and ownership costs for petrol and diesel cars

Melanie Shufflebotham, co-founder of Zapmap, recently said the figures demonstrated that “the vast majority of drivers choosing electric will enjoy total cost of ownership savings”.

Not a clear road

Despite the momentum, industry experts caution that barriers to mass EV adoption remain.

Public charging infrastructure, insurance costs and concerns over charging availability continue to deter some motorists, particularly those without off-street parking.

Some drivers also remain wary about battery lifespan and depreciation, although recent market data suggests used EV values are beginning to stabilise.

Nevertheless, analysts increasingly believe Britain may now be approaching the long-predicted “tipping point” where EVs move from a niche alternative to the mainstream default choice for many buyers.

With petrol and diesel prices remaining vulnerable to international instability and new EV prices continuing to fall, the economic case for electric motoring appears stronger than ever.