Motorists across the UK are now effectively paying 17p for every mile they drive in a petrol car, according to fresh analysis of current fuel prices and average vehicle efficiency.
The Rising Cost of Petrol Per Mile
The calculation, from motoring and insurance website NimbleFins, is based on the latest RAC fuel price data and typical fuel economy. The average price for a litre of unleaded petrol currently stands at 134.06p, with diesel at 142.96p. With the average UK petrol car achieving around 36 miles per gallon (mpg), the running cost purely for fuel works out at 17p per mile, before any maintenance or other expenses are factored in.
While petrol prices have seen a slight decrease recently—falling from 135.55p per litre at the start of October to around 134.06p in early January—the per-mile cost remains significant for household budgets.
Government Announces New Pay-Per-Mile Tax for EVs
In a parallel development, the government has unveiled plans for a new pay-per-mile charge specifically for electric vehicles (EVs). Chancellor Rachel Reeves confirmed the policy, which will introduce a 3p-per-mile tax for electric cars, set to begin in 2028 following a consultation period.
This new levy is designed to address a growing fiscal gap. The Treasury is facing a reduction in revenue from traditional fuel duty as more drivers switch from petrol and diesel cars to EVs, which have been exempt from Vehicle Excise Duty (VED) until recently. The exemption from road tax for EVs was removed in April 2025.
How the New EV Charge Would Work
The proposed scheme would require EV owners to estimate their annual mileage and make an advance payment on top of their standard VED. If they drive more than estimated, they would need to top up the amount, while any unused portion could be carried over to the following year.
At the proposed 3p rate, example journey costs would include:
- £12 for a trip from London to Edinburgh
- £5 between Cambridge and Bristol
- £2 from Liverpool to Leeds
The Treasury estimates the charge would cost EV drivers an average of £250 per year.
Concerns and the Road Pricing Debate
Motoring groups have expressed concern that introducing such a tax could deter people from making the switch to electric vehicles, potentially slowing the UK's green transport transition. The concept of road pricing—charging drivers for the miles they cover—has long been considered politically challenging for successive governments.
Despite the new charge, running an electric car is expected to remain cheaper than a petrol equivalent. When combined with the average cost of home charging, the total cost per mile for an EV is projected to be between 5p and 11p, compared to the current 17p for petrol.
A Government spokesperson stated: "Fuel duty covers petrol and diesel, but there’s no equivalent for electric vehicles. We want a fairer system for all drivers whilst backing the transition to electric vehicles." They highlighted £4 billion in government support for the EV transition, including grants to cut upfront costs.
The debate over how to fairly fund the nation's roads as the motoring landscape changes is now firmly in the spotlight, with both petrol and electric vehicle drivers facing new calculations for the cost of every journey.
