Across the UK, petrol and diesel costs have risen sharply, driven by global instability and tightening oil supply. While price spikes aren’t new, the speed and scale of this increase has got many asking, is now the time to move away from petrol and diesel and go electric?

What is driving the rise in fuel prices?

The current surge is largely being driven by geopolitical tensions affecting global oil supply. When key routes and production are disrupted, oil prices rise quickly and UK fuel prices follow.

But the UK feels this more than most due to:

• High fuel taxes (a significant portion of the pump price)

• Oil being traded in US dollars, exposing prices to currency shifts

• Already high baseline fuel costs

Add in refining, logistics and retail pressures, and the result is what we’re seeing now, rapid, noticeable increases at the pump.

How much have fuel prices risen?

Over the past two weeks, petrol and diesel prices per litre have risen sharply, and experts warn that costs are likely to keep increasing, with potential shortages ahead.

What does it really cost to charge an EV in 2026?

Even as electricity prices rise and petrol and diesel costs fall, traditional fuel prices would need to drop substantially before they could compete with the everyday affordability of EV charging. In many cases, EVs continue to benefit from significant savings on the cost of fuel. Charging a medium-sized electric car at home can cost less than half the price of filling up an equivalent petrol vehicle.

How to calculate pence per mile?

The easiest way to compare fuel costs is to look at the pence per mile of EVs and ICE vehicles. To work out how much charging / fueling your vehicle costs use the formulas below

How do costs really compare?

Lease Electric have compared three EVs to similar ICE alternatives, showing you how cost of charging VS refuelling with petrol or diesel compares this March

We have used the following prices (31.03.2026)

The figures have been sourced from RAC Fuel Watch and RAC Charge Watch. To find out more about our EV charging partner Pod Point, and the Home Charging Tarriff with EDF Energy, click here. For more information about Good Energy's EV Tarrif, Click Here.

Cost comparisons March 2026:

1. Volkswagen ID.3 and Vollkswagen Golf

We have compared the VW ID.3 with the VW Golf Hatchback, due to their similar dimensions.

2. MG S5 Long Range and MG ZS Exclusive 

We have compared these vehicles, as the same model is available as either an electric vehicle (EV) or a petrol-fuelled vehicle.

3. Kia EV9 - Land Rover Ranger Rover Sport

Despite the difference in manufacturers, the comparison between the Kia EV9 and the Land Rover Range Rover Sport was made due to their similarity in size.

How much does this cost over a year?

To help illustrate overall whole-life running costs, we’ve compared annual charging and fuel expenses based on a full year of driving. For simplicity, this example assumes a driver covering 10,000 miles per year.

For most EV drivers, the majority of charging takes place at home. However, occasional longer journeys,such as holidays,may require the use of public rapid chargers, typically found at motorway service stations. In this scenario, we’ve assumed 90% home charging (9,000 miles) and 10% public charging (1,000 miles).

The same annual mileage and assumptions are applied consistently across electric, petrol, and diesel vehicles to ensure a fair comparison.

1. Volkswagen ID.3 and Vollkswagen Polo 

We have compared the VW ID.3 with the VW Golf Hatchback, due to their similar dimensions.

2. MG S5 Long Range and MG ZS Exclusive 

We have compared these vehicles, as the same model is available as either an electric vehicle (EV) or a petrol-fuelled vehicle.

3. Kia EV9 - Land Rover Ranger Rover Sport

Despite the difference in manufacturers, the comparison between the Kia EV9 and the Land Rover Range Rover Sport was made due to their similarity in size.

How do prices compare if I can not charge from home?

In the UK, access to off-street parking varies significantly depending on location. In some urban areas, up to 60% of households do not have access to off-street parking. While the national average sits at around 32%, this still represents millions of households unable to charge an EV at home.

If workplace charging isn’t available either, this leaves public charging as the primary option, often the most expensive way to charge an electric vehicle. But how does the cost really compare?

In reality, EV drivers without access to home or workplace charging tend to be savvy. They don’t rely solely on rapid chargers at premium prices, instead using a mix of charging options to keep costs as low as possible.

As an example, we’ve used the Volkswagen ID.3 featured throughout this article to illustrate how a mixed charging strategy could affect annual charging costs for a driver covering 10,000 miles per year.

Our calculations assume a blend of public charging methods, with 60% charged via 7kW public chargers, such as the Pod Points commonly found at Tesco and Lidl, alongside 20% rapid charging and 20% ultra-rapid charging.

If this driver relied solely on rapid chargers, such as those on the GRIDSERVE Electric Highway, the cost to cover 10,000 miles would be around £2,000 per year.

How do rising fuel prices impact individuals?

For individuals, rising fuel prices are being felt immediately. Weekly fuel spend has increased, and costs have become harder to predict. EVs offer a clear alternative, lower running costs, particularly when charging at home. For drivers covering regular mileage, the financial case is now stronger than ever.

How do rising fuel prices impact businesses?

For businesses, the impact is more strategic. Rising fuel costs directly affect fleet expenses, delivery pricing, and overall operational efficiency. This makes transitioning to electric not just an environmental decision, but a commercial one. EVs can significantly reduce running costs, improve cost predictability, and protect businesses from ongoing fuel volatility. When combined with tax efficiencies and salary sacrifice schemes, switching to electric is quickly becoming a competitive advantage, helping businesses reduce costs while positioning themselves for the future.

If you're considering switching to an EV, and would like to know more about charging, we have a few EV guides that you might find useful: 

Public Charging FAQs

Home Charging FAQs

Pod Point 

EV Charging VS Fuel Cost Calculator