The amount of money saved on EV fuel varies depending on location and previous vehicle driven.

Transitioning from a traditional gasoline vehicle to an electric car can result in substantial savings on fuel expenses, although the amount saved varies based on location. According to the latest Energy.gov Fact of the Week (FotW), the savings per mile can range from just a few cents to nearly $0.20, depending on where you reside.

Data obtained from the Argonne National Laboratory reveals the estimated fuel cost savings per mile at a zip code level across the U.S. Regions with lower electricity rates and higher gasoline prices tend to experience the most significant savings, while areas with higher electricity costs see fewer reductions. The West Coast and Pacific Northwest show the most substantial improvements, with savings up to $0.20 per mile, while certain parts of the East Coast and New England see savings of only $0.06 or less.

Argonne explains that the variation in savings is partially due to differences in utility costs, but also notes that states with the highest savings may have a higher percentage of drivers using larger vehicles such as trucks or SUVs. In such cases, switching to an electric vehicle would result in a more considerable cost reduction. However, despite potential savings on fuel, electric vehicles generally have higher upfront costs compared to gasoline-powered cars, which can offset any financial benefits throughout the ownership period.

This discrepancy highlights the challenge of offsetting the higher initial purchase prices of electric vehicles through fuel savings. While many consumers anticipate that the switch to an electric model will eventually pay off, the actual payback period may extend over several years, which may not align with the typical ownership period for many drivers.

It is important to note that Argonne’s study excludes plug-in hybrid vehicles and does not consider any incentives offered by manufacturers or the government. Some automakers provide free charging or charging credits to reduce operating costs for a certain period. However, once these incentives expire, owners are required to utilize public charging stations and pay for charging services, possibly impacting the overall cost-effectiveness of owning an electric vehicle.