For the first time in more than a year, owners of traditional gas-powered cars saved more money at the pump than those driving their electric counterparts, according to a consulting firm.
As inflated gas prices came down at the end of last years, the fuel cost for most Internal Combustion Engine (ICE) vehicles was comparatively cheaper in the final quarter of 2022 than charging an electric vehicle (EV), analysts with the Anderson Economic Group (AEG) said.
The cost to drive 100 miles in a gas-powered car dropped by more than $2 in October, November and December 2022. And with electricity prices rising last year, mid-priced ICE cars became more economical than EV cars for the first time in 18 months, the firm said.
AEG’s cost analysis looked at the underlying cost of energy for gas, diesel and electricity, as well as road taxes and fees, added costs to operate pump or EV charger and the cost to drive to a fueling station. The costs were calculated for vehicles driving 12,000 miles per year.
The analysis found that in Q4 2022, a typical mid-priced gas car driver paid about $11.29 to fuel their vehicle for 100 miles of driving. That was about 31 cents cheaper than what a mid-priced electric car driver paid charging their vehicle at home, and more than $3 less than what comparable EV drivers pay when they charge their vehicles at a fuel station.
Unless you were driving an expensive luxury electric vehicle, you were losing money charging your car versus paying for gas, experts said.
“The run-up in gas prices made EVs look like a bargain during much of 2021 and 2022,” said AEG’s Patrick Anderson. “With electric prices going up and gas prices declining, drivers of traditional ICE vehicles saved a little bit of money in the last quarter of 2022.”