Electric vehicle drivers in the UK could soon save even more money as petrol prices increase due to the war in the Middle East, according to new analysis from the Energy and Climate Intelligence Unit.

Energy firm Octopus Energy has announced it will cut the price of its EV charging tariff to 5.5p per kWh from April, down from 7p before the war in the Middle East. At this rate, some electric cars could cost less than 1.5p per mile to run.

By comparison, petrol cars are becoming more expensive as global oil prices rise. With petrol expected to reach around £1.50 per litre, drivers typically pay about 17p per mile.

The report says this shift could increase the yearly savings for EV drivers. Before the recent rise in petrol prices, EV owners saved around £850 a year on average. Now, that figure could rise to £1040 annually for those using cheaper overnight charging tariffs, such as from Octopus Energy.

Rising oil prices, linked to conflict in the Middle East, are pushing up fuel costs for petrol drivers. Annual fuel bills could increase from about £1,220 to £1,390, with warnings prices could go even higher if oil markets worsen.

Meanwhile, many EV drivers are partly protected from global energy price shocks due to caps on electricity prices, which remain in place until mid-2026. Some tariffs, like Octopus Energy’s fixed EV plans, will also shield customers from future price rises.

Colin Walker, Head of Transport at the Energy & Climate Intelligence Unit (ECIU), said: "EVs powered by British wind and solar farms help the UK cut its dependence on foreign oil imports, and protect its drivers from volatile markets over which we have no control. Oil is traded internationally, so trying to squeeze more out of the North Sea has little impact on the price paid at the pump."