Are rising fuel costs driving more EV demand?
All data correct as of May 2026
How fuel costs have been rising
Fuel prices continued to climb throughout early 2026, with average UK unleaded petrol prices rising from 132p per litre in January to 165p by April.
As fuel costs increase, our data suggests more customers may be reconsidering EVs as a lower-cost alternative to petrol and diesel vehicles.
Source: rac.co.uk/drive/fuel-watch/
But the strongest-performing EVs are changing
Our 2025 EV data showed that customers were choosing more established models like the Tesla Model 3, Nissan Leaf and BMW i3, with average vehicle ages ranging between 20-42 months.
Today, the electric vehicle sweet spot looks a bit different.
61.9%
14
51.7%
18
42.9%
16
40.9%
22
40.2%
26
What this means for dealers
Customers don’t just seem to be looking for the cheapest EV anymore. They’re paying closer attention to range, technology and battery confidence too.
Our strongest-converting EVs in 2026 are consistently between 14–26 months old, suggesting nearly-new stock is currently hitting the sweet spot between affordability and modern EV technology. Customers can access newer features, improved range and more confidence in battery performance, without the cost of buying brand new.
For dealers, that could create an opportunity to stock newer-generation EVs before competition in the used market increases further.
Frequently asked questions
Our 2026 EV finance data suggests they could be. Between January–February and March–April 2026, used EV proposals increased by 39% at the same time UK petrol prices rose from 132p to 165p per litre. As fuel costs rise, more customers may be reassessing the long-term cost of running petrol and diesel vehicles.
The strongest-performing EVs in our data are consistently between 14–26 months old. These nearly-new vehicles appear to offer the balance many customers are looking for between affordability, modern technology and improved battery range.
Lower running costs are clearly part of the conversation, especially as fuel prices rise, but customers also appear to be paying closer attention to range, technology and overall practicality when choosing an EV.