For years, the debate over the true cost of electric vehicles (EVs) versus their gas-powered and hybrid counterparts has raged on, with car buyers left scratching their heads over which option truly offers the best value. Now, two detailed reports published on February 16, 2026, have thrown new light on the matter, revealing not only the financial calculations behind EV ownership but also the looming policy changes that could reshape the landscape for drivers across the UK.
According to an in-depth analysis by CNET, the cost of owning an EV, a hybrid, or a gas-powered car varies significantly depending on several factors: upfront purchase price, fueling costs, maintenance and repairs, insurance, and eventual resale value. The verdict, after crunching all the numbers? Over the long haul, electric vehicles come out ahead in terms of total cost.
Yet, just as these findings might sway the undecided toward an electric future, a new policy twist threatens to complicate the picture. In the UK, Labour’s proposed mileage-based tax on electric vehicles—set to take effect in 2028—could see some drivers, especially in rural areas, paying nearly four times as much in road charges as those in London, according to a separate analysis of official data highlighted by The Electric Car Scheme.
Let’s break it down. In the upfront cost category, gas-powered cars still win the day. As CNET pointed out, "The battery is going to be the biggest reason that EVs are more expensive," with heavy-duty batteries and research and development costs driving up sticker prices. But while the initial outlay for an EV might sting, the pain quickly fades when you look at the cost of keeping the car running.
Fueling an EV is dramatically cheaper than filling up at the pump. The annual cost to charge an electric vehicle hovers around $550, compared to a whopping $1,320 a year for a gas-powered car. That’s a difference that adds up fast, especially as petrol prices continue their upward march.
Maintenance tells a similar story. While EV tires tend to wear out a bit quicker and battery repairs after a collision can be costly, electric cars avoid many of the routine expenses that plague traditional vehicles. Forget oil changes, spark plug replacements, and exhaust system fixes—EVs simply don’t need them. Hybrids, meanwhile, get hit with the worst of both worlds, requiring both conventional and electric maintenance, which CNET dubbed “the worst of both worlds.”
But it’s not all smooth sailing for EVs. When it comes to insurance and depreciation, they lag behind. Insurance premiums are higher, primarily because EVs themselves are pricier. And when it’s time to sell, owners may be in for a disappointment. Automotive expert Amelia Dalgaard, known as "Motorhead Mama," explained the conundrum: "Because the EV technology improves so quickly (leading to better battery range and faster charging) that older models become undesirable more rapidly (very much like the old iPhone models)." In other words, rapid innovation makes yesterday’s EV feel obsolete, dragging down resale value.
Still, when you tally up the costs mile by mile, EVs are tough to beat. Maintenance and fueling combined cost around $0.11 per mile for electric cars—about half what you’d shell out for a gas-powered vehicle. To put real numbers to the test, CNET compared a 2026 Chevrolet Equinox EV to its gas-powered twin. Over 15 years, the EV’s total cost came to $57,420, while the gas model racked up $72,345 in expenses. That’s nearly $15,000 in savings, a figure that might surprise even the most skeptical buyer. Dalgaard summed it up: "In general, you're going to be better off with an EV."
But just as the economic case for EVs seems airtight, the UK’s new mileage-based tax threatens to muddy the waters. Announced in the autumn budget and set to start in 2028, the 3p-a-mile road charge is projected to raise £1.1 billion a year, helping to offset falling fuel duty revenues as more drivers ditch petrol for plug power. Yet, as The Electric Car Scheme’s analysis shows, this new tax won’t hit all drivers equally.
Drivers in the south-west of England face the steepest bill, with an average annual charge of £110.25—nearly four times the £33.09 paid by Londoners. The East Midlands isn’t far behind at £105.09. Rural motorists, particularly those in smaller towns and villages near cities, could pay an average of £156.51 each year, while their urban counterparts would see a more modest £76.02 added to their annual expenses. The analysis, based on the 2024 National Travel Survey, highlights a stark urban-rural divide that critics warn could slow EV adoption just as the government is trying to accelerate it.
Thom Groot, chief executive of The Electric Car Scheme, didn’t mince words: “There are still a lot of people in the mass market who are very sceptical about EVs … so anything that gives people a reason not to [buy one] creates yet another boundary.” The policy shift comes at a crucial time. Electric car sales in the UK soared by nearly 25% in 2025, reaching a record 473,000 vehicles—about 23.4% of the total market. Still, that figure lags behind the 28% target set out in the government’s zero emission vehicle mandate.
To soften the blow, the mileage-based charge was announced alongside a £1.3 billion boost to the electric car grant, offering buyers up to £3,750 off the price of a new EV. Yet, the Office for Budget Responsibility estimates the new tax could reduce EV sales by about 440,000 over five years—a significant setback for the government’s green ambitions.
Officials are keen to stress the fairness of the new system. A government spokesperson said, “Similar to fuel duty, those who drive more will pay more. Right now, electric vehicle drivers pay no fuel duty, while petrol drivers pay around £480 a year. That’s not fair. Under the new system, electric vehicles will pay half the duty of petrol cars—still the cheaper, greener choice.”
Meanwhile, the consultation on the 3p-a-mile tax, which drops to 1.5p a mile for plug-in hybrid drivers, runs until mid-March 2026, leaving time for further debate and adjustment. The backdrop to these changes is a steady decline in fuel duty revenue, which has fallen from £27.5 billion in 2019-20 to an expected £24 billion in 2025-26, underscoring the government’s need to find new ways to fund road maintenance and infrastructure.
Despite the looming tax, advocates like Groot remain optimistic. “Even when this tax comes in, the major savings and environmental benefits of going electric remain firmly in place. EVs will continue to be the most practical and future-proof choice for UK drivers.”
For prospective car buyers weighing their options, the message is clear: while the road ahead may have a few new twists and turns, the long-term savings and environmental benefits of electric vehicles still make them a compelling choice. But as governments adjust policies and the technology continues to evolve, staying informed will be more important than ever.