Episode 394 - On this week's show I analyse the costs of recharging an electric car versus refilling a petrol car. Which is cheaper? I also reveal why it could soon become more expensive to run an electric car than a petrol equivalent. I discuss how you can take advantage of stock market seasonality where certain stocks and funds perform better during the winter. Finally, Andy discusses a new QR code scam that has been catching restaurant diners out.
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Podcast highlights - Episode 394
Cost of running an electric car vs a petrol car
In this episode we calculated the cost of running an electric vehicle now and in the future versus running a petrol car. Or in the other words, the cost per mile to drive an electric car versus that of driving a petrol car. The calculations were made using the following assumptions:
- future energy prices based on analysis from Cornwall Insight, the energy consultancy
- a petrol car with a 50 litre tank achieving 34.9 miles per gallon, equivalent to a family car (Kia Sportage)
- assuming the electric car has a 60kWh battery and a 200 mile range
| Method of charging | Unit cost to charge an electric car in pence per KWH | Cost (£) to fully charge an electric car (range 200 miles) | Equivalent cost in pence to drive 1 mile (p/mile) | Max pence per litre of petrol you can pay before driving an electric car becomes cheaper than driving a petrol car for the chosen charging method |
| Sept 2022 - Home charging | 28.00p | £15.10 | 7.55p/m | 58.14p/l |
| Sept 2022 - Rapid charging point on motorway | 44.00p | £24.44 | 12.22p/m | 94.11p/l |
| October 2022 - Home charging under the Government's Energy Price Guarantee (EPG) | 34.00p | £18.34 | 9.17p/m | 70.59p/l |
| Q1 2023 - Home charging - ignoring EPG | 66.76p | £36.00 | 18.00p/m | 138.61p/l |
| Q2 2023 - Rapid charging point on motorway | 92.23p | £51.24 | 25.62p/m | 197.26p/l |
| Q1 2024 - Home charging - ignoring EPG | 58.69p | £31.65 | 15.83p/m | 121.86p/l |
For comparison, the table below shows the cost in term of pence per mile to run a petrol car, depending on the price paid at a petrol station (in pence per litre).
| Petrol price at forecourt (pence per litre) | Equivalent cost in pence per mile (using petrol) |
| 120p/l | 15.58p/m |
| 150p/l | 19.48p/m |
| 160p/l | 20.78p/m |
| 170p/l | 22.08p/m |
| 180p/l | 23.38p/m |
| 190p/l | 24.68p/m |
| 200p/l | 25.97p/m |
In conclusion, electric cars are currently cheaper to run than petrol cars when the cost of petrol is around 160p per litre. However, if petrol prices stay the same (or drop) and energy prices rise as predicted, that dynamic will change dramatically as shown in the tables above - especially if you don't charge your electric car at home.
While the cost of making a journey in an electric car is currently cheaper than using a petrol car, there are of course other costs to take into account including repair costs and the initial cost of purchasing each type of car. Electric cars are significantly more expensive to purchase than their petrol equivalents at present. During this section of the podcast we go on to compare these additional costs.
Winter portfolio
This part of the podcast discussed insights gleaned from the 80-20 Investor research article on the performance of the Winter Portfolio last winter.
QR scams
More than 85% of smartphone users have scanned a QR code in the last year while over 35% of people regularly scan a QR code every week, according to research conducted by Mobileiron. The increased usage of QR code has seen a rise in QR code scams
Examples of QR scams include:
- malicious QR codes being imbedded within emails impersonating reputable organisations or brands such as Microsoft Office or HMRC. The email will ask the recipient to scan a QR code after which they will be taken to a website that impersonates the reputable organisation but which asks them to input financial and personal information (known as phishing). This information can then be used to steal money from the victim or fraudulently use their identity (known as identity theft).
- fake QR codes being placed over the genuine QR codes that can be found on restaurant tables at places like Nandos. The genuine QR codes are normally used by diners to pay their bill online rather than having to pay in the restaurant. However fake QR codes can direct diners to a spoof website which is used to steal their credit/debit card details.
Tips to avoid become a victim of a QR code scam include:
- if you are at all unsure do not scan a QR code and instead navigate to the company's website yourself
- beware if a QR code on a restaurant table appears to have been tampered with
- if you are in a restaurant, choose to pay your bill offline, via a member of staff as you normally would
Resources:
- MTTM Podcast Episode 244 – Winning winter portfolios
- MTTM Podcast 297 – Winter portfolio update
- The Times: Electric vs Petrol, which is cheapest?
- Confused.com fuel cost calculator
- The Express: Electric cars could soon be cheaper than petrol and diesel cars
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