Oil prices may spike. EV running costs don’t have to

By Gurjeet Grewal, our CEO

When global instability pushes oil prices around, we don’t think you should be the ones carrying the cost.

Anyone following the news recently will have noticed oil prices moving again.

Over the past few years there has been a fairly constant stream of cost-of-living pressures, and energy prices have often been at the centre of that conversation.

For drivers, the issue is often even more pronounced.

When geopolitics, conflict or supply disruptions affect global oil markets, the impact tends to show up quickly at the petrol pump. Oil and gas are traded globally, and reliance on them means drivers are exposed to those market forces.

Electric vehicles run on a very different energy system.

That difference matters more when global events directly impact household budgets.

Instead of relying almost entirely on oil, EVs are powered by electricity generated from a mix of sources including wind, solar, nuclear and gas. That diversity helps reduce exposure to the kinds of global shocks that can cause petrol prices to spike.

Petrol cars run on oil markets. EVs run on the electricity system. 

As more driving shifts from oil to electricity, the link between global oil markets and the cost of driving becomes weaker. For many EV drivers, that means running costs that are easier to predict and plan around, even when the wider cost of living feels uncertain.

A natural question people ask when oil prices rise is whether EV drivers are affected too.

The short answer is much less than petrol or diesel drivers.

Petrol and diesel prices move closely with the price of oil. When global supply is disrupted, drivers tend to feel the impact quickly at the pump.

Electric vehicles work differently. Because electricity is generated from a mix of sources, including renewables, price movements tend to be less extreme than those seen in oil markets.

That doesn’t mean electricity prices never move. But because EVs run on a more diverse energy system, drivers are typically far less exposed to the sudden price swings that affect petrol and diesel.

EVs also introduce something petrol vehicles simply can’t offer - flexibility. Drivers can choose when they charge, often taking advantage of cheaper electricity during lower-demand periods.

For many households, that flexibility makes running costs easier to manage and plan for.

You can see that in what EV drivers are telling us.

One of the things we hear regularly from EV drivers is that global oil price headlines start to feel far less relevant once they switch.

Mark from Gloucestershire, a self‑confessed petrol head in his 60s, recently made the move to electric through Octopus’ salary sacrifice scheme. Despite decades of driving high‑performance petrol cars, he says the decision increasingly felt like the practical one.

“I filled up again yesterday and paid 27p a litre more for petrol… so at the moment an EV just seems like the obvious choice.”

For Mark, the decision was also about reducing exposure to global uncertainty.

“This is almost about, if I’m completely honest, future proofing ourselves a little bit because none of us know what’s going to happen in the Middle East.”

Michelle, another Octopus EV salary sacrifice customer, described a similar sense of relief when she sees headlines about oil prices rising.

“It’s a big relief to know I won’t have to be paying that price at the pump.”

Jim shared a similar perspective. One of the reasons he originally chose an electric vehicle was the constant fluctuation in oil prices.

“The price of a barrel of oil is not something I would closely monitor as it seems there is always a reason due to global instability to raise the price of oil. Because I charge at home on a fixed EV tariff, those fluctuations feel far less relevant to me now, which brings reassurance.”

Predictability was another theme drivers highlighted.

Michelle explained that knowing the cost of charging ahead of time removes a layer of financial uncertainty.

“It gives certainty and much lower cost. I know exactly how much it’s going to cost me now and in two months.”

Jim also pointed to the value of that stability when managing a busy household.

“Paying roughly 2.5p per mile is significantly cheaper than petrol, but more importantly it removes the uncertainty. With commuting and running kids around to clubs it’s important to be able to budget.”

For some drivers, electrification also goes beyond the car.

Earl, an Octopus Energy customer who recently installed solar panels and battery storage alongside his EV, says the combination gives him a sense of protection from wider energy volatility.

“When I see fuel prices increasing, I feel lucky that I’m a little shielded from gas and electric price increases.”

And when asked whether they would consider switching back to petrol, the answer from drivers was overwhelmingly clear.

Michelle said: “I’d keep the EV. Love the car, love the efficiency and it’s brilliant to drive.”

Jim agreed: “I would politely decline. Charging at home and knowing roughly what it will cost makes budgeting straightforward. I wouldn’t want to return to the unpredictability of petrol prices.”

Earl was equally clear: “With petrol prices increasing, there is no chance I would go back to an ICE vehicle.”

Switching to electric is only part of the picture. Keeping charging affordable matters just as much.

At Octopus EV, we focus on practical things that help reduce the cost of driving electric.

That includes working directly with manufacturers to secure competitive vehicle pricing, offering energy tariffs designed for EV drivers, and building technology that helps people use electricity when it’s cheapest.

Charging during lower-demand periods, often overnight, is one of the ways drivers can keep costs down. Smart charging technology can automate this, allowing vehicles to take advantage of cheaper energy without drivers needing to constantly monitor prices.

Of course, charging habits vary.

Some drivers mainly charge where they park overnight. Others rely more on public charging because they park on the street or don’t have access to a driveway.

Whether you have a driveway or park on the street, we are always looking for ways to keep charging costs as low as possible.

We’re also working to make public charging simpler and more transparent. Platforms like Electroverse bring together more than a million chargers across the UK and Europe into one network, helping drivers find reliable charging with clear pricing wherever they are.

The aim isn’t just to help people switch to electric - it’s to make sure the experience stays affordable long after they do.

And once drivers make the switch, many find they wouldn’t want to go back.

As the energy system continues to shift towards cleaner and more diverse sources of power, the link between global oil markets and the cost of driving will keep weakening, which is good news for drivers.