Most drivers have wrong idea of EV charging costs says Leasing Options

MANCHESTER-based Leasing Options in partnership with Ohme, suggest that many assumptions about EV charging costs, public infrastructure, and overall affordability don’t hold up against real-world driving behaviour.

Leasing Options recently came an impressive third in our inaugural BN25 league table, with 14,666 orders in 2025.

It points to recent research from the AA shows that 80% of drivers believe electric cars are too expensive to purchase, while only 21% think EVs are cheaper to run than petrol or diesel vehicles. One in five motorists also believes charging away from home costs more than refuelling a traditional car.

Myth: EVs are expensive to ‘fuel’

According to Ohme, the UK’s largest home EV charging company, for the same money you’d spend on a gallon of unleaded petrol (enough for about 40 miles in a typical petrol car), an EV can travel around 90 miles using standard home electricity. When charged on a smart off-peak tariff, the same amount could power an EV for more than 350 miles.

The latest Standard Variable Tariff (SVT) rate of electricity is 27.69p per kWh, while an average EV achieves roughly 3.5-4 miles per kWh.

Based on an average UK mileage of 6,800 miles per year, a petrol car running on unleaded at £1.36 per litre costs around £1,049 annually, equivalent to roughly 6-7 miles for every £1 spent.

That means even on a standard tariff, EVs cost significantly less per mile than petrol cars.

The reality of smart tariffs

Tariffs such as Intelligent Octopus Go offer EV drivers six hours of off-peak electricity at 7p/kWh every 24 hours.

Peter McDonald, Ohme Mobility Director says: “Six hours of electricity is 44.4kW, which is the equivalent of at least 130 miles for the majority of EVs, so most drivers often don’t need all of those six hours of charging. Many EV drivers just constantly top up with a small charge; they don’t do a ‘big fill’ like petrol or diesel drivers do.”

At 7p/kWh, the cost of covering average annual UK mileage (6,800 miles) drops to around £136 per year, or just over £11 per month, compared with more than £1,000 a year in fuel costs for a petrol car.

Public charging concerns

Another common concern is the cost of public charging, particularly ultra-rapid chargers, which can reach 85p/kWh and are subject to 20% VAT, compared with 5% VAT for home electricity.

McDonald adds, “Ultra-rapid charging at public chargers can be very expensive – up to 85p/kWh – more than ten times the price of what you could pay at home. There is also 20% VAT on public charging, whereas it’s only 5% at home. However, the reality is that most EV drivers know that home will always be the cheapest place to charge, so use public chargers sparingly.”

Annual savings add up fast

Ohme’s fuel comparison data shows how much EV drivers can save on costs. For average UK mileage:

Unleaded – £1.36/litre: ~£1,049 per year
EV on standard tariff – 27.69p/kWh: ~£538 per year
EV on smart tariff – 7p/kWh: ~£136 per year

Even without a smart tariff, EV drivers can halve their annual ‘fuel’ costs.

“The idea that EVs are expensive to run is outdated. When you look at how people actually charge their cars – mostly at home, often overnight, and increasingly on smart tariffs – the savings are undeniable. Even with rising energy prices, EVs remain dramatically cheaper to ‘fuel’ than petrol or diesel cars.”

Mike Thompson, Chief Operating Officer, Leasing Options Tweet