The Zero Emission Transportation Association (ZETA) released its latest report showing that electric vehicles (EVs) continue to be more affordable for drivers. In addition to affordability, the latest numbers reinforce the benefits of price stability that comes with reducing reliance on international oil markets. While the national average cost of gasoline has fluctuated by as much as a dollar per gallon during the past year, the cost per kilowatt-hour of electricity has remained relatively stable.
“Our research has shown that driving an electric vehicle can save American drivers significant travel costs, but this report expands on that conclusion by showing how electricity is more insulated from price fluctuations compared to gas-powered vehicles,” said Albert Gore, executive director of ZETA. “American families are on a budget. Ensuring that they can travel affordably requires better protection from fluctuating oil prices. Electric vehicles provide that protection.”
The series of reports released by ZETA includes data regarding the average cost-per-mile for both EVs and comparable gas-powered vehicles, providing estimates for pickup trucks, SUVs, and sedan vehicles. The report also includes data specific to 22 states.
March’s numbers continue to support the major conclusions from previous reports, specifically that:
- Gas prices are inherently volatile—and they always will be. EVs, on the other hand, operate independently of global oil and gas markets, so their operating costs are not subject to fossil fuel price shocks, disruptions, and supply shortages. Instead, EVs run on electricity, which is cheaper than gasoline, is price-stable, and is domestically produced from increasingly renewable and local resources.
- EVs are far cheaper to drive than gas-powered vehicles. Nationally, gas-powered vehicles can cost up to 4.5 times more to drive per mile than EVs. However, there can be significant variation across state lines. In addition to examining this month’s data, this ZETA report also looks back at previous months, and the data confirms that over time, EVs are markedly cheaper to drive per mile—and experience far greater price stability—than gas-powered vehicles.
- The total cost of EVs is lower than that of gas-powered vehicles. In many cases, EVs are already comparable in price to similar new gas-powered models. And in addition to their fuel cost savings, EVs require less maintenance than gas-powered vehicles, too. EVs can save drivers between $1,800 and $2,600 on operating and maintenance costs per year, according to Consumer Reports.
- EVs will cost even less to buy thanks to consumer and manufacturing tax credits. The EV tax credit expansions and advanced manufacturing production tax credits in the Inflation Reduction Act will further reduce EV sticker prices, making it cost less to both buy and drive an EV. This will help American EV manufacturers compete against foreign entrants into the market by aggressively incentivizing supply chain onshoring. Furthermore, EV tax credits will help signal durable market certainty, which will help American EV manufacturers scale up to meet demand. This will create millions of good-paying American jobs and help the United States win the global clean transportation race.
This month’s analysis, along with previous reports, are available here.
