The cost to refuel cars and vans – whether at the pump or plugging in electric vehicles – is now at its lowest since before the cost-of-living crisis, according to research by fuel and business expense payment company Allstar.
The AllCosts report examines the real-life price of electric, petrol and diesel, and analyses how this has affected the cost of running vehicles for businesses.
Data for the report was gathered over the spring and summer this year, and is based on information extracted from millions of charges and fill-ups on the Allstar payment network.
The report reveals that the average cost of charging an electric vehicle at home has dropped around 15% to 24p per kWh, the lowest it has been since before the cost-of-living crisis which began in 2021.
Electricity prices on the public charging network have dropped in line with domestic pricing, with the average cost (p per kWh) now standing at 78p. This is 4p less than Q1 2024 (82p) and the lowest recorded cost was 25p.
The story is similar for those using traditionally fuelled vehicles; drivers saved over 20% when they filled up in September compared to April 2024. In spring, average petrol prices peaked at 149p per litre with some forecourts charging up to 161p.
By September, the average had dropped to 136p with 124p being the lowest. Theoretically a vehicle with a 60-litre tank could have cost up to £97 to fill in April, but only £75 in September. Similarly, the cost of diesel has also fallen to an average of 150.85p per litre.
As the third report of its kind, it analyses the data gathered from the series of reports to look into how choosing to refuel or recharge could affect running costs for business drivers in many different situations. In this edition, Allstar also review plug-in hybrids to find out if they could result in cost savings for a business.
Looking ahead to 2025, Ashley Tate, Allstar Chargepass UK MD, said: “The transition to electric vehicles continues, and while it may have faced some headwinds this year, the industry is hard at work investing in infrastructure, with more than 59,000 charge points now on the Allstar network and ChargeUK claiming a new connector goes online every 25 minutes.
“In the coming year we will also see a focus on reducing emissions for those existing vehicles that are petrol or diesel, in order to ensure operations are as sustainable as possible amid their transition process. This will include measures to drive more efficiently, buy fuel more effectively, plan better routes and streamline operations.”
Paul Holland (pictured), MD for UK/ANZ Fleet at Corpay, including UK brand, Allstar, said: “This year has seen mixed messages when it comes to running costs and decarbonisation. With our analysis showing that both electricity and fuel prices are trending downwards, businesses running cars and vans are no doubt welcoming the breathing space financially.
“As we approach the close of the year, we have seen various geopolitical events both locally and internationally that will continue to cast their shadow. This does mean that it will be harder to predict the prices that businesses and individuals will pay to refuel or recharge, and more than ever it’s important to plan ahead and make savings wherever possible.”
Holland also called for greater support to help fleets decarbonise. He said: “There is no doubt that the move to electric is happening, but there is also another movement in the fleet sector that needs to be supported in 2025: the decarbonisation of existing petrol and diesel vehicles.
“While electric will take over one day, at present many businesses still have a majority of their commercial fleet running on petrol and diesel. But that doesn’t mean they are ignoring the need to run more sustainable operations, and reduce emissions.
“They need support to drive more efficiently, buy fuel more effectively, plan better routes and streamline operations, and we’re committed to help them with this.”
The report can be found here.
