Gas Prices Drop: Are Internal Combustion Vehicles Cheaper to Fuel than EVs?

With gasoline prices dropping, a new study suggests that gas-powered vehicles may be more economical to fuel than an equivalent electric vehicle. Entry-level gas-powered cars had an average fueling cost of $9.46 per 100 purposeful miles, defined as those going to a destination, not a gas or charging station, according to the East Lansing-based in Michigan, U.S. consulting firm Anderson Economic Group. On the contrary, the cost for 100 miles of operating similarly segmented EVs like the Nissan Leaf or Chevrolet Bolt was estimated at $12.55 when charging mostly at home based on U.S. Energy Information Administration energy cost data. The cost jumped to $15.98 with primarily commercial charging.

“With electricity prices steady and gas prices slightly down,” Anderson, CEO and study author, said in a statement, “we continued to see most traditional gas-powered vehicles as more economical to fuel than their EV counterparts in late 2023.”

According to the American Automobile Association, as of Monday, February 26, 2024, regular gas prices in the U.S. are, on average, $3.26 per gallon, down 3.1% year-over-year.

Gas-powered mid-priced crossovers and cars like the Chevrolet Equinox or Toyota Camry had an average fueling cost of $10.71 per 100 purposeful miles. Mainly charging at home, EVs like the Ford Mustang Mach-E and Tesla Model 3 had an estimated cost per 100 miles of $12.61. The cost while using primarily commercial charging was even higher at $16.11.

“Trends for the recently introduced electric pickup truck segment again saw fueling costs comparable to those of traditional gas or diesel fueled ICE pickups,” Anderson said, noting pickup drivers have been traveling to job sites frequently, hauling or taking extended road trips that require commercial charging.”