Drivers of petrol cars are set to pay significantly more per mile to use Britain's roads compared to owners of electric vehicles under new tax rules coming into force later this decade.
The New Pay-Per-Mile Road Charges
Starting in April 2028, the government will introduce a new system of road taxation based on mileage. Drivers of fully electric vehicles (EVs) will be charged 3 pence for every mile they drive. Those using plug-in hybrid cars will pay a lower rate of 1.5 pence per mile.
The Treasury confirmed that these rates will increase annually in line with inflation. Mileage will be checked once a year, typically during a vehicle's MOT test. For newer cars, checks will occur around their first and second registration anniversaries.
A Stark Cost Difference for Fuel Drivers
According to analysis by the personal finance website Nimblefins, the new charges will create a substantial financial gap. The average petrol car driver currently pays around 17 pence per mile in fuel duty to keep their vehicle on the road.
This means that from 2028, a driver using a conventional petrol car will be paying approximately 14 pence more per mile than a driver of an equivalent electric vehicle. The government's independent forecaster, the Office for Budget Responsibility (OBR), states the new EV charge is about half the current fuel duty rate paid by petrol car owners.
Potential for Tampering and Driver Backlash
The government's plan relies on readings from in-vehicle odometers, but officials acknowledge this system is vulnerable to tampering, known as "clocking." The Treasury admits the new tax "may increase the likelihood of motorists choosing to clock their vehicles" and says it is exploring ways to prevent this.
The announcement has already sparked frustration among some early adopters of electric vehicles. Stephen Walton, 46, from Crewe, who bought an EV for his wife in July 2023, said the move feels like a penalty. "I've paid more to do the right thing and I'm being penalised for it," he stated, adding that the higher purchase price and rapid depreciation of EVs already make ownership challenging. He called the pay-per-mile tax "the final straw" and declared it would be his first and last electric car due to the erosion of "fiscal perks."
Fuel price context from October 2025 shows ultra-low sulphur unleaded petrol averaged £1.34 per litre, with diesel at £1.43 per litre. Nimblefins noted the price gap between diesel and petrol has widened recently, making diesel less appealing than in previous years, though its price has fallen from earlier peaks.
