Rising fuel prices are strengthening the case for drivers to go electric: Will Voisey
Rising petrol and diesel prices caused by the conflict in Iran are once again forcing drivers to think carefully about the true cost of being on the road.
Even though the 5p rise in fuel duty has been delayed until 2027, many households and businesses are feeling the pinch at the pumps. At the same time, electric vehicles are becoming a more realistic option for drivers who want greater certainty over running costs.
For years, the conversation around EVs focused heavily on range anxiety and charging infrastructure.
That picture has changed significantly. The UK now has a well-established public charging network, with rapid and ultra-rapid chargers becoming increasingly common on motorways, retail parks and in town centres. Drivers are also seeing more workplace charging and residential charging options become available.
Public charging costs still vary, but electricity remains more stable than petrol and diesel prices, which can swing sharply in a matter of weeks. For drivers able to charge at home overnight, the savings can be even more noticeable.
There is also growing momentum behind efforts to reduce VAT on public charging. At present, home charging is taxed at five per cent VAT, while public charging is charged at 20 per cent. The industry has been pushing for that gap to close, which would make public charging fairer and more affordable for drivers without off-street parking.
The financial case becomes even stronger for company car drivers. Benefit-in-kind tax on fully electric vehicles remains significantly lower than it is for petrol and diesel alternatives.
For the 2026/27 tax year, the BIK rate for pure electric cars is four per cent, compared to rates that can exceed 30 per cent for many petrol and diesel models.
That difference can save drivers thousands of pounds over the course of a lease or ownership period, particularly for higher-rate taxpayers. It is one of the main reasons why more businesses are introducing electric vehicle salary sacrifice schemes as part of their employee benefits packages.
Salary sacrifice has helped make EVs accessible to drivers who may not have previously considered one. Employees can often access a newer electric car at a lower monthly cost than an equivalent petrol or diesel vehicle once tax savings and running costs are taken into account.
The second-hand EV market is also far stronger than it was a few years ago. Early adopters are now moving into newer models, which means more used electric vehicles are becoming available at competitive prices. That wider availability is helping bring EV ownership within reach of more households.
Battery technology and manufacturer warranties have also improved confidence in used EVs. Concerns that buyers may once have had around battery lifespan are easing as more long-term data becomes available.
None of this means electric vehicles are the perfect solution for every driver. Home charging is still easier for some households than others, and drivers covering very high mileages will continue to compare charging times and route planning against the convenience of traditional fuel stations.
But there is no getting away from the wider direction of travel. Petrol and diesel prices remain unpredictable, fuel duty is increasing again, and more drivers are looking for ways to protect themselves from rising motoring costs.
Electric vehicles are no longer a niche choice or a future consideration. For many motorists and businesses, they are increasingly becoming the sensible financial option now.
Will Voisey is managing director of Synergy Car and Van Leasing