Electric, hybrid, diesel or petrol: Which is cheapest to run in 2025?

Choosing a new (or newer) car means weighing up lots of factors — but with the rising cost of living, knowing what it’ll really cost to run is more important than ever.

We've compared the Volkswagen Golf (available in petrol, diesel, and as a plug-in hybrid) with the fully electric Volkswagen ID.3, both similar in price and specifications.

Quick comparison: Annual running costs

Here’s how the annual running costs stack up based on average real-world usage:

(Figures based on vehicles registered from April 2025, when updated road tax (VED) rules come into effect for electric and hybrid cars.)

Cost type	Electric ID.3	Hybrid Golf	Diesel Golf	Petrol Golf
Fuel/energy	£558	£712	£978	£1,214
Tax	£190	£190	£183	£190
Servicing	£230	£258	£240	£262
Total per year	£978	£1,160	£1,401	£1,666

The bottom line: Electric cars can still be cheaper to run — saving up to £688 per year compared to petrol models, and £423 compared to hybrids.

Fuel costs: Breaking it down

Petrol Golf

📊 £1,214/year | 53.5 mpg | ~848 litres | £101/month

The petrol Volkswagen Golf can do 53.5 miles per gallon. Over 10,000 miles, you'd need about 848 litres of petrol. At an average price of 143.2p per litre (RAC, March 2025), this means you'd spend £1,214 per year on petrol, or about £101 per month.

Diesel Golf

📊 £978/year | 68.9 mpg | ~658 litres | £81/month

The diesel Volkswagen has a better economy at 68.9 miles per gallon. For 10,000 miles, you'd use 658 litres of fuel. At 148.6p per litre (RAC, March 2025), you'd spend £978 on diesel over the year, working out at roughly £81 per month.

Hybrid Golf

📊 £712/year | Half electric, half petrol | £59/month
 £261 electricity + £451 petrol

The plug-in hybrid Golf uses both petrol and electricity. Assuming half your annual mileage is electric-powered and half uses petrol, you'd spend about £261 on electricity and £451 on petrol, for a total of £712 per year or £59 per month.

❗Worth noting: Many hybrid drivers don't achieve these ideal figures. Without regular charging, costs can approach those of petrol-only vehicles.

Electric ID.3

📊 £558/year | 4.3 miles per kWh | 2,326 kWh | £47/month

The ID.3 can do 4.3 miles per kWh. To drive 10,000 miles, you'd use 2,326 kWh of electricity. With average home electricity costing 24p per kWh (Ofgem, April 2025), you'd spend £558 per year or £47 per month.

💡Money-saving tip: Special EV tariffs offer night-time rates as low as 7.5p per kWh, potentially bringing annual costs down to under £400 for overnight charging.

Road tax (VED)

For cars registered from April 2025:

	First year	Subsequent years	3-year average
Electric	£0	£0	£0
Hybrid	£15	£170	£118
Diesel	£190	£180	£183
Petrol	£210	£180	£190

Worth noting: From April 2025, newly registered electric vehicles are no longer tax-exempt. Most will pay the standard annual VED rate of £190.

Insurance

Insurance costs depend largely on the driver, but the car's insurance group gives us a good indication:

• Petrol Golf: Insurance group 14 (lowest)
• Diesel Golf: Insurance group 17
• Hybrid Golf: Insurance group 24
• Electric ID.3: Insurance group 27 (highest) 

As a rule, the more complex or valuable the car, the higher its insurance group — and usually, the premium.

Servicing costs

Regular servicing isn’t mandatory, but it’s recommended to keep your car running efficiently and avoid costly repairs.

	Electric	Hybrid	Diesel	Petrol
12-month	£230	£185	£170	£190
24-month	£230	£280	£260	£295
36-month	£230	£310	£290	£300
Yearly average	£230	£258	£240	£262

Why EVs win here: Electric vehicles require less maintenance overall, which helps keep costs predictable — every year comes in at £230.

Other factors to consider

For electric vehicles

Home charging installation costs about £800-£1,200 (Checkatrade, 2025), though some energy providers offer discounts with their EV tariffs.

Public charging has expanded significantly, with over 100,000 chargers nationwide (ZapMap). New options include lamppost and kerbside charging for those without driveways. Do note that public charging typically costs 45-65p per kWh – more than home charging.

Long-term benefits include 8-10 year battery warranties, better value retention than in previous years, and exemption from Clean Air Zone charges in many UK cities.

For hybrids

The key to making a hybrid economical is charging discipline. Without regular charging, running costs approach those of petrol cars. Real-world efficiency is often lower than manufacturer claims, and having two power systems can mean more potential issues long-term.

The verdict

🔌 Electric cars – Best overall savings: Up to £688/year cheaper than petrol.
 🔋 Hybrids – Only cost-effective with consistent charging.
 🚗 Diesel – Still worth considering for high-mileage drivers without home charging.
 ⛽ Petrol cars – Most expensive to run overall. Reliable and widely available but rising fuel prices and tax changes make them costlier in the long term.