August 22, 2022 – All-electric vehicles might be more expensive initially, but once purchased, they bring significant cost savings over internal combustion engine (ICE) counterparts.
Battery-electric vehicles are the absolute king in terms of energy costs, as all models had annual fuel costs of less than $1,000, regardless of type. Assuming EPA fuel economy data, plug-in hybrids and conventional hybrids (non-rechargeable) are the only types with an annual energy cost (electricity and fuel) in the $1,000-$2,000 range. However, many of them are above $2,000 annually.
The annual fuel cost for ICE vehicles starts above $2,000, and varies vastly between $2,000 and $7,000, depending on type and fuel (gasoline, diesel, E85). Interestingly, the biggest differences between vehicles are in the small car category – because it contains ultra-efficient small cars, as well as luxury sports cars with low fuel economies, according to the report.
