How much does it cost to charge an EV vs fuel a car in 2022?

The global spike in inflation, crippling supply shortages and geopolitical sanctions are soaring fuel and electricity prices, and hitting the wallets of all Australians.

Despite the higher upfront price tag, a key selling point of battery-electric vehicles is cheaper running costs compared to traditional internal combustion engine counterparts.

However, while EVs theoretically have a lower total cost of ownership over time, it is currently subject to higher insurance premiums due to a fledgling local supply chain of costly parts and limited qualified tradespeople. Some car brands also set similar service intervals and capped prices for EVs compared to petrol or diesel-powered models, despite significantly fewer moving parts on the former.

How do the savings of an EV compare in 2022?

For the purposes of this story, we’ll compare an entry-level EV model with the most comparable petrol, petrol-hybrid or diesel model using claimed energy (kWh/100km) and fuel (litres/100km) consumption figures based on the stricter, but still conservative, combined WLTP testing cycle.

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We’ll work to the fact that the average Australian drives 15,000km per year (or 41km per day).

Our sums are based on the average home off-peak overnight electricity tariff in New South Wales at $0.34 per kWh and the most common 50kW DC fast charging station at $0.40 per kWh for those who need to rely on public EV infrastructure.

At the time of writing, average national fuel prices – excluding the temporary 22.1 cent fuel excise cut which is due to end in September – currently cost $2.22 per litre for 94RON E10 unleaded, $2.44 per litre for 95RON premium unleaded, $2.30 per litre for 98RON premium unleaded and $2.57 per litre for diesel. It's worth noting that these prices sit near the bottom end of the fuel cycle at the time of writing.

How much does it cost to fuel a petrol car vs charge an electric car in 2022?

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MG ZS EV vs ZST

As one of Australia’s most affordable new electric cars, the MG ZS EV is about to receive a major facelift with an all-new lithium-iron-phosphate (LFP) battery pack, upgraded tech, and refreshed looks in line with its petrol-powered ZST sibling that debuted in 2020.

Opting for the pure-electric small SUV (17.3kWh/100km) could save around $28 per week or $1461 per year in running costs if owners can charge overnight at home compared, to filling up with the most affordable 94RON E10 unleaded petrol.

Depending on a public fast charging station still saves about $25 per week or $1305 annually in ‘fuel’ costs for the ZS EV compared to the turbocharged petrol ZST (7.1L/100km).

Comparisons

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Kia Niro EV vs Seltos

The South Korean automaker has introduced the all-new Kia Niro EV to Australian shores with an available unique contrasting C-pillar design, vehicle-to-load (V2L) capabilities, and similar dimensions to the popular, soon-to-be facelifted Seltos small SUV.

Compared to the Seltos with its optional 1.6-litre turbo-petrol engine (7.6-L/100km), the Niro EV (16.2kWh/100km) is about $32 per week or $1682 per year better off if owners can top-up at home.

Those figures cut to around $29 per week or $1536 per year in running cost savings if solely using public EV fast chargers.

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Hyundai Ioniq 5 vs Palisade

Although the retro-inspired Hyundai Ioniq 5 and buff three-row Palisade might be polar opposites on the outside, the former’s dedicated EV underpinnings mean they share the same long wheelbase and interior space.

The Ioniq 5 rear-wheel drive (17.9kWh/100km) is around $36 per week or $1901 per year cheaper to charge at home compared to refilling the tank of the Palisade with its 2.2-litre diesel unit (7.3L/100km).

If owners rely on public EV fast charging infrastructure, the Ioniq 5 can still potentially save around $33 per week or $1740 annually compared to running a diesel-powered Palisade.

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Tesla Model Y vs Toyota RAV4 Hybrid

*Energy consumption figures for the Tesla Model Y rear-wheel drive (RWD) is based on estimated information from zecar. Tesla does not disclose all numbers for its vehicles.

The much hyped Tesla Model Y is finally available to order Down Under that adds the crossover SUV formula to the ubiquitous Model 3 sedan. But is it cheaper to run than the booming Toyota RAV4 Hybrid?

The base Model Y RWD (13.9kWh/100km) still saves owners about $16 per week or $842 per year in running expenses when charged at home compared to the RAV4 Hybrid (4.7L/100km), despite its frugal petrol-electric hybrid motor.

Charging only at public EV fast chargers brings the Model Y’s savings slightly down to around $14 per week or $717 per year in running costs versus the RAV4 Hybrid.

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Mercedes-Benz EQC vs GLC

With an all-new model looming from Stuttgart, the Mercedes-Benz EQC continues strong in the EV sales race as our inaugural Wheels COTY 2019 winner.

Compared to its GLC (8.1L/100km) derivative which demands a minimum of 98RON premium unleaded petrol, the battery-electric EQC (21.4kWh/100km) is about $38 per week or $1983 per year cheaper to run when charged at home.

Meanwhile, charging the medium SUV on public EV infrastructure reduces those savings to around $34 per week or $1790 per year in running expenses versus the petrol-powered equivalent.

AUTHOR'S NOTES

To address questions raised about long-term ownership costs as it relates to battery degradation, the author of this story – which was primarily around annual running costs rather than full lifetime costs – has added some additional points below.

• I don’t believe we have enough data to definitively say that EV batteries have a shorter lifespan than combustion engines and transmissions;
• I’ve heard that technicians can replace individual faulty/degraded battery modules rather than the whole pack – dramatically reducing the cost;
• We also know that some OEMs have similar servicing intervals and capped prices for EV compared to ICE – so cheaper maintenance is only theoretical in many cases; and
• In the current used EV climate, the Model 3 is appreciating and the first-gen Leaf still sells for $10-$27K – so I’m not sure his sentiment that EVs depreciate faster holds true.

– Henry Man