Drivers could face substantial “petrol premiums” in the coming years if the government weakens its electric vehicle (EV) targets, according to a recent report. The Energy and Climate Intelligence Unit (ECIU) report suggests that any softening of the Zero Emission Vehicle (ZEV) mandate could dramatically increase the cost of driving for many motorists across the UK.
If the rollout of EVs is delayed by two years, leading to a slower adoption rate, there could be a shortfall of around 2.7 million second-hand electric cars. The ECIU warns that this could force millions of drivers to pay an extra £1,600 annually to operate a petrol vehicle compared to an EV.
Colin Walker, head of transport at the ECIU, stated, “Families seeking to lower their driving bills by getting their hands on a cheap-to-run second-hand EV could be left stuck paying a £1,600 a year petrol premium simply because there aren’t enough electric cars to go round.”
The ZEV mandate, initially introduced by the previous government and continued by the current administration, has been successful in driving competition and lowering prices, resulting in hundreds of thousands of new EVs on UK roads.
Electric vehicle sales increased by over 21% in 2024, making the UK the largest EV market in Europe, surpassing Germany and Norway. However, experts caution that this momentum must be maintained to avoid a potential £40 billion additional cost for drivers who continue using petrol vehicles.
The Department for Transport (DfT) is currently reviewing data from a consultation on the ZEV mandate. Many in the automotive industry are urging the government not to make significant changes to the existing targets.
Previous research by CBI Economics, commissioned by the ECIU, estimates that contributions made by the car industry to the UK economy could drop by as much as £34.1 billion (73%) if the EV transition is delayed, potentially leading to 400,000 job losses. Conversely, a positive scenario could boost economic output by over £16 billion and create 167,000 new jobs.
Walker added, “Parts of the car industry are pushing to slow the ZEV mandate, but doing so could not only leave millions of families worse off, but stall investment in charging infrastructure and cost the UK hundreds of thousands of jobs as we fall behind in the global race to build a car industry fit for an electric future.”
Transport Secretary Heidi Alexander has indicated that the government is working closely with car manufacturers to support the shift to electric vehicles, with a DfT response expected “as soon as possible.” She also highlighted the substantial growth in EV charging stations, with almost 20,000 added in 2024 alone, bringing the total to nearly 75,000 in the UK.
