Rising oil prices have given electric vehicles their greatest cost advantage to date over petrol and diesel-powered cars, according to recent analysis
- Apr 23
- 2 min read
The sharp rise in fossil fuel prices in Germany and elsewhere around the world, triggered by the war with Iran, has significantly increased the cost advantage of electric vehicles over cars with internal combustion engines. According to data from the price comparison platform Verivox, in March 2026 charging a mid-range or premium electric vehicle at home was considerably cheaper—around two-thirds less expensive than refuelling a petrol car and more than half the cost of operating a diesel vehicle.
Calculations show that driving 1,000 kilometres in an electric vehicle cost approximately €53 following the outbreak of the war with Iran. By comparison, travelling the same distance in a petrol-powered car cost around €160, while a diesel vehicle cost approximately €113. It is worth noting that owning and operating an electric vehicle in Germany was already more cost-effective even before the crisis.
Experts predict that the cost gap could widen further. Fuel prices continue to rise, while any increase in electricity tariffs will largely depend on how long the conflict in the Middle East continues.
Following the outbreak of the war, Iran took retaliatory measures affecting fossil fuel infrastructure in the Persian Gulf region and restricting shipping through the Strait of Hormuz, one of the world's most important energy supply routes. This, in turn, contributed to rising energy prices worldwide. In response, the German government introduced temporary tax reductions on petrol and diesel fuel to ease the burden on motorists. However, the measure has been criticised as being insufficiently effective and offering little incentive to move away from fossil fuels.
At the same time, interest in purchasing electric vehicles has increased in both Germany and other countries. However, Verivox emphasises that the greatest savings are achieved only when the vehicle is charged at home. Electricity prices at public charging stations are considerably higher, particularly at fast-charging points, where prices can be almost twice as high as household electricity rates. Nevertheless, even public charging continues to offer a cost advantage over petrol.
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