Petrol costs hit 16p per mile as drivers face a new tax landscape

Government & Policy

Petrol costs hit 16p per mile as drivers face a new tax landscape

Published 06 February 2026

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Even with a small dip at the pumps, the maths still bites: based on RAC data and average consumption, petrol running costs are being reported at around 16.54p per mile for fuel alone (assuming roughly 36 mpg). Diesel, at around 141p per litre, is even less fun.

The EV Café Team

And remember, that per-mile number is fuel only. Once you stack insurance, servicing and VED, the real cost of driving is higher again.

The twist: EVs are heading into pay-per-mile territory

This article reports that the Government is preparing a new 3p-per-mile charge for EVs, scheduled to begin in 2028, as fuel duty revenues decline.

The described mechanism: EV owners estimate annual mileage in advance and pay the levy on top of standard VED.

Even with that levy, the piece suggests EV running costs could still land around 5p–11p per mile (depending on charging costs), remaining cheaper than petrol/diesel on a per-mile basis.

EV Café Takeaway

“Convenience is worth an awful lot to people.”

Sam Clarke

“We haven’t reached saturation point yet of people who can charge at home.”

Sara Sloman

Two things can be true at once:

petrol/diesel running costs are still painful
government will increasingly look to “replace” fuel duty through other taxation

The risk is messaging. If EVs are framed as the answer and the next target, you can confuse the mass market fast. The only way this lands well is if it’s transparent, fair, and doesn’t punish the people we’re trying to bring along.

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And remember, that per-mile number is fuel only. Once you stack insurance, servicing and VED, the real cost of driving is higher again.

The twist: EVs are heading into pay-per-mile territory

This article reports that the Government is preparing a new 3p-per-mile charge for EVs, scheduled to begin in 2028, as fuel duty revenues decline.

The described mechanism: EV owners estimate annual mileage in advance and pay the levy on top of standard VED.

Even with that levy, the piece suggests EV running costs could still land around 5p–11p per mile (depending on charging costs), remaining cheaper than petrol/diesel on a per-mile basis.

EV Café Takeaway

“Convenience is worth an awful lot to people.”

Sam Clarke

“We haven’t reached saturation point yet of people who can charge at home.”

Sara Sloman

Two things can be true at once:

petrol/diesel running costs are still painful
government will increasingly look to “replace” fuel duty through other taxation