Is Electric Car Ownership Now Cheaper Than Gas? | Fuel vs EV Costs

The surge in fuel prices across Europe is prompting a reevaluation of the cost benefits of electric vehicles (EVs). Recent analysis indicates a significant shift in the economic equation, with electric driving now substantially cheaper than gasoline-powered alternatives. But how large is the gap, and what factors are driving this change?

The Price Differential: A Growing Divide

According to a recent analysis by mobility platform Shuttel, electric driving is currently nearly 60% cheaper than driving a gasoline car. This calculation, updated as of March 17, 2026, is heavily influenced by escalating tensions in the Middle East and the resulting impact on global oil prices. The figures show a stark contrast: 100 kilometers in an electric car costs approximately €6.63, while the same distance in a gasoline vehicle now requires €14.94 – more than double the expense. This analysis is based on current energy prices, public charging rates, and data collected from 25,000 company employees using the Shuttel platform.

Marieke Kuijpers, sector manager at Rabobank, believes these high fuel prices could make electric driving attractive to a wider audience. Nu.nl reports that electric vehicle drivers are benefiting from the current situation, and the trend is likely to continue as long as fuel costs remain elevated.

The Cost Breakdown: Where the Savings Lie

The cost advantage of EVs isn’t simply about fuel versus electricity. Several factors contribute to the overall savings. The Shuttel data highlights the importance of where an EV is charged. While fast-charging stations can cost around €0.75 per kilowatt-hour (kWh), charging at home or work is significantly cheaper, averaging €0.325 per kWh for business users of the Shuttel platform. Importantly, the majority of EV charging – around 75% – takes place at home or work, minimizing the impact of higher public charging rates.

The analysis assumes an average consumption of 17 kilowatt-hours per 100 kilometers for a mid-size electric car, and a fuel consumption of 1 liter per 16 kilometers for a comparable gasoline vehicle. These figures are crucial for understanding the magnitude of the cost difference, but it’s important to note that actual consumption will vary based on driving style, vehicle type, and environmental conditions.

Impact on Consumers and the Automotive Market

The widening cost gap between electric and gasoline vehicles has clear implications for consumers. For those considering a new vehicle purchase, the economic argument for EVs is becoming increasingly compelling. However, the upfront cost of an EV remains a barrier for many. While operating costs are lower, the initial investment is typically higher than for a comparable gasoline car. Government incentives and subsidies, where available, can help bridge this gap, but their availability and scope vary significantly by region.

The shift towards electric vehicles also impacts the automotive industry. Manufacturers are investing heavily in EV development and production, and the demand for EVs is driving innovation in battery technology and charging infrastructure. Manners.nl notes the increasing popularity of EVs, particularly in light of the current geopolitical situation and its effect on fuel prices. This trend is likely to accelerate as fuel prices remain high and EVs become more affordable.

Beyond Fuel Costs: Total Cost of Ownership

While fuel costs are a major component of vehicle ownership, they are not the only factor. A comprehensive assessment of the total cost of ownership (TCO) must also consider maintenance, insurance, depreciation, and taxes. EVs generally require less maintenance than gasoline cars due to their simpler mechanical design. However, battery replacement can be a significant expense, although battery prices are falling and warranties are becoming more comprehensive. Insurance costs for EVs can also be higher, reflecting the higher value of the vehicle and the potential cost of battery repairs.

The Geopolitical Context and Future Outlook

The current surge in fuel prices is directly linked to geopolitical instability, particularly the ongoing conflict in Iran and broader unrest in the Middle East. These events have disrupted oil supplies and driven up prices, creating a favorable environment for electric vehicles. However, the situation is fluid and unpredictable. A resolution to the conflict or an increase in oil production could lead to a decline in fuel prices, potentially reducing the cost advantage of EVs.

Looking ahead, several factors will shape the future of electric vehicle adoption. Continued investment in charging infrastructure is crucial, as is the development of longer-range batteries and faster charging technologies. Government policies, such as tax incentives and emission standards, will also play a significant role. The pace of EV adoption will ultimately depend on a complex interplay of economic, technological, and political factors.

The analysis from Shuttel and corroborated by Rabobank suggests that the current situation presents a unique opportunity to accelerate the transition to electric mobility. The economic benefits are now undeniable, and the momentum is building. However, it’s important to remember that the long-term outlook will depend on a variety of factors, and the cost advantage of EVs could fluctuate in response to changing market conditions.

NederlandElektrisch.nl provides further updates on the evolving landscape of electric vehicle affordability in the Netherlands.