EV vs Petrol Car Running Costs in New Zealand: Which Is Cheaper?

Choosing between an electric vehicle and a petrol car is no longer only about fuel type. Purchase price, charging costs, road user charges, servicing, insurance and depreciation can all affect how much a vehicle costs over time.

Electric vehicles generally cost less to power and maintain, while petrol cars can be cheaper to buy and easier to refuel during long trips. The better choice depends on how far you drive, where you charge and how long you plan to keep the vehicle.

This guide compares the main EV and petrol running costs for New Zealand drivers.

EV vs Petrol Running Costs at a Glance

For a simple example, imagine two similar vehicles travelling 12,000 kilometres each year:

Based on these assumptions, the EV could cost around $1,285 less each year to power and use on the road.

These figures are only an example. Your actual costs will depend on your vehicle, driving habits, electricity plan, charging method and current fuel prices.

EECA’s vehicle comparison calculator uses an assumed household electricity rate of $0.22 per kilowatt-hour and an annual driving distance of 12,000 kilometres. It also includes applicable road user charges when comparing vehicles. (EECA)

How Much Does It Cost to Charge an EV?

The cost of charging an EV depends mainly on where and when you charge it.

Charging at Home

Home charging is usually the most affordable option. A vehicle using 17 kWh per 100 kilometres would need approximately 2,040 kWh of electricity to travel 12,000 kilometres.

At $0.22 per kWh, this would cost about:

2,040 kWh × $0.22 = $448.80 per year

Some electricity retailers offer lower overnight charging rates, which could reduce this cost further. Drivers with home solar may also be able to charge using some of their own electricity.

Using Public Chargers

Public charging generally costs more than charging at home. Rapid chargers may be convenient for road trips, but regularly relying on them can reduce the running-cost advantage of an EV.

The total price may be based on:

• The amount of electricity used

• The time connected to the charger

• The charging network

• The charger’s speed

• Any membership or parking fees

Drivers who can charge at home most of the time will usually see the greatest savings.

How Much Does Petrol Cost Each Year?

Petrol costs depend on fuel efficiency, driving distance and pump prices.

Using a petrol car that consumes 7.5 litres per 100 kilometres:

• Annual distance: 12,000 km

• Fuel required: 900 litres

• Petrol price: $2.94 per litre

• Estimated yearly fuel cost: $2,646

A small, efficient petrol car may use less than this, while an SUV, ute or performance vehicle may use considerably more.

Do Electric Vehicles Pay Road User Charges?

Yes. Battery electric vehicles in New Zealand must pay road user charges.

The standard light EV rate is currently $76 per 1,000 kilometres, excluding administration fees. A battery EV travelling 12,000 kilometres each year would therefore pay approximately:

12 × $76 = $912 per year

Plug-in petrol hybrid vehicles currently pay a reduced RUC rate because their owners also contribute through petrol tax when buying fuel. (NZ Transport Agency)

Petrol vehicles do not purchase separate RUC licences because road tax is already included in the petrol price.

RUC reduces some of the EV’s running-cost advantage, but home charging can still make an EV cheaper to operate than a similar petrol vehicle.

EV vs Petrol Servicing Costs

Electric vehicles generally have fewer moving parts than petrol vehicles. They do not require components such as:

• Engine oil

• Oil filters

• Spark plugs

• Exhaust systems

• Fuel filters

• Traditional multi-speed gearboxes

This can make regular servicing simpler and less expensive.

However, EVs still require maintenance. Owners need to budget for:

• Tyres

• Brakes

• Suspension

• Cabin filters

• Cooling systems

• Wheel alignments

• Warrant of Fitness inspections

EV tyres may also wear more quickly in some vehicles because EVs are often heavier and deliver power immediately.

Petrol vehicles require more engine-related servicing, and costs may increase as the vehicle gets older.

What About EV Battery Replacement?

Battery replacement is one of the biggest concerns for people considering an EV. However, replacing the full battery is not part of normal servicing.

Most modern EV batteries are designed to last for many years, although their ability to hold charge may gradually reduce. Battery health can be affected by:

• Vehicle age

• Mileage

• Charging habits

• Climate

• Frequent rapid charging

• The vehicle’s battery management system

When buying a used EV, ask for a battery health report and check whether any manufacturer warranty remains.

A lower battery capacity does not always mean the vehicle is unusable. It may simply have a shorter driving range than when it was new.

Insurance Costs

EV insurance can sometimes cost more because of:

• Higher vehicle purchase prices

• Specialist repair requirements

• Expensive electronic components

• Limited availability of certain parts

• Battery inspection requirements after an accident

However, insurance premiums vary significantly between vehicles and drivers. A high-value petrol car may cost more to insure than a modestly priced EV.

It is a good idea to request insurance quotes before choosing a vehicle rather than assuming one option will automatically be cheaper.

Purchase Price and Finance Repayments

An EV may cost less to run but more to purchase. This means the savings on electricity and servicing need to be compared with:

• The deposit

• Loan repayments

• Interest costs

• Loan term

• Establishment fees

• Expected resale value

For example, saving $1,200 each year on running costs may not fully offset significantly higher monthly finance repayments.

Used EVs can offer a more affordable entry point, but buyers should carefully check the vehicle’s range, battery condition and charging compatibility.

A full cost comparison should include both the purchase price and the ongoing cost of ownership.

Depreciation and Resale Value

Depreciation is often one of the largest vehicle ownership costs, even though it is not paid as a monthly bill.

The resale value of an EV may be affected by:

• Battery health

• Driving range

• New battery technology

• Availability of newer models

• Charging speed

• Used-vehicle demand

Petrol vehicles also lose value, particularly as they age and require more maintenance.

Because vehicle values can change, consider how long you plan to keep the car. A vehicle that suits your needs for several years may provide better overall value than one you expect to sell quickly.

When Could an EV Be Cheaper?

An EV may offer better value when you:

• Drive regularly

• Can charge at home

• Have access to off-peak electricity

• Spend a significant amount on petrol

• Plan to keep the vehicle for several years

• Want lower routine servicing requirements

The more kilometres you drive, the more opportunity there may be to recover a higher purchase price through lower running costs.

When Could a Petrol Car Be More Practical?

A petrol vehicle may suit you better when you:

• Drive only occasionally

• Cannot charge at home or work

• Regularly travel through areas with limited chargers

• Need a lower upfront purchase price

• Tow heavy loads over long distances

• Want quick and widely available refuelling

Petrol vehicles remain convenient for drivers who frequently travel long distances and do not want to plan charging stops.

EV vs Petrol: Which Should You Choose?

For many New Zealand drivers, an EV can cost less to run, particularly when it is charged at home. Electricity can be considerably cheaper than petrol, and EVs often have lower servicing requirements.

However, road user charges, insurance, purchase price and depreciation must also be considered. The cheapest vehicle to power is not always the cheapest vehicle to own.

EECA recommends comparing the total cost of buying, running and eventually selling a vehicle rather than looking at fuel costs alone. Its comparison tools include purchase price, energy use, RUC and other ownership assumptions. (EECA)

Need Finance for Your Next Vehicle?

Whether you are considering an electric vehicle, a hybrid or a petrol car, choosing the right finance can be just as important as choosing the right vehicle.

Rostron Finance compares vehicle finance options from more than 75 lenders across New Zealand. Our team can help you explore repayments and loan structures that suit your budget and circumstances.

Check your vehicle finance options with Rostron Finance today.

The cost examples in this article are estimates only. Electricity prices, petrol prices, road user charges and vehicle efficiency can change. Check current rates and your chosen vehicle’s specifications before making a decision.