When you’re choosing whether to operate an electric van (EV van) compared to a petrol or diesel van, the purchase price is only one aspect. Once you factor in fuel, tax, insurance and congestion charges, the gap between electric, diesel and petrol vans can be much bigger than it first appears.
So, which one actually costs the least to keep on the road?
Business Choice Direct (BCD) is one of the UK’s leading Courier Van Insurance brokers; keeping a close eye on the courier industry and recent developments.
In this article, BCD looks at the differences between running an EV van compared to a more traditional petrol or diesel van, and what are the actual cost comparisons for each vehicle type.
Do van drivers need to pay Electric Vehicle Excise Duty (eVED)?
The UK’s new pay-per-mile road tax, known as Electric Vehicle Excise Duty (eVED), will cost fully electric car drivers 3 pence per mile and 1.5 pence per mile for plug-in hybrid electric vehicles (PHEVs). Scheduled to take effect on April 1st 2028, this flat rate is designed to replace lost fuel duty revenues.1
If, however, you own an electric van (EV van) or Light Goods Vehicle (LGV), eVED will NOT apply to you, although it is worth keeping up to date with developments because government policy may change in the future.
Are EV vans cheaper to run than diesel or petrol vans?
On average, electric vans are the cheapest to run day-to-day, largely thanks to lower “fuel” costs and exemption from most low-emission zone charges. But the full picture, including insurance and upfront price, is more complicated. Here’s how EV van running costs stack up against diesel and petrol, category by category.
EV Van vs diesel vs petrol costs: Quick comparison*
*Figures are UK-wide averages based on 2026 industry data and are intended as a general guide. Actual running costs vary by vehicle model, mileage, charging setup. Fuel and congestion charges may be subject to change.
Electric van running costs vs diesel: Fuel is where the big savings are
Fuel (or energy) is usually the largest single running cost for any van, and it’s where electric pulls furthest ahead.
- Diesel vans typically cost around 12–15p per mile to fuel at UK pumps, depending on efficiency and fuel cost fluctuations.4
- Electric vans charged at home or depot overnight rates typically cost just 3-6p per mile – roughly half to a third of the diesel figure.5
The catch is the charging method. Relying on public rapid chargers, which can cost significantly more per kWh than an off-peak home or business tariff, can narrow the savings by a significant amount.
For fleets without access to overnight depot charging, the gap between EV van running costs and diesel shrinks – though electric still tends to come out ahead.
Electric van running costs vs petrol
Petrol vans sit in a similar (or slightly worse) position to diesel on cost per mile, since diesel engines are generally more fuel-efficient than petrol equivalents.
That means the EV van vs diesel vs petrol costs comparison usually shows the widest fuel savings against petrol, and a narrower but still meaningful saving against diesel.
Congestion charges and Clean Air Zones
This is where electric vans see some of their clearest savings, especially for businesses operating in or near major cities.
- The London Congestion Charge is £18 per day if paid in advance or on the same day, and £21 if paid after the third day of travel.6
- The Ultra Low Emission Zone (ULEZ) can add £12.50 per day (or more) for non-compliant diesel and petrol vans up to 3.5 tonnes — a cost that disappears entirely for electric vans.7
- Similar Clean Air Zones and Low Emission Zones now operate in Birmingham, Bristol, Sheffield, Newcastle, Bradford, Oxford and several Scottish cities, most charging diesel vans daily fees unless they meet strict emissions standards.
- For a van making regular trips into these zones, avoiding just one £10–£20 daily charge can save thousands of pounds a year — often outweighing every other cost category combined.
If your van rarely enters a city centre, this advantage matters far less. But for last-mile delivery, courier and urban trade businesses, it’s frequently the deciding factor in electric van running costs vs diesel comparisons.
So, which is cheapest overall?
Adding it all up, a rough annual running cost comparison for a van doing around 20,000 miles a year, factoring in fuel/energy, VED, Courier Van Insurance, servicing and typical urban Clean Air Zone exposure, generally looks something like this:
Electric van
Lowest overall running costs, driven by cheap energy, tax exemptions and zero-emission zone charges – offset slightly by higher insurance.
Diesel van
Mid-range running costs; still the most practical option for high-mileage, rural or heavy-payload use where charging infrastructure is limited.
Petrol van
Usually the most expensive to run day-to-day, due to lower fuel efficiency, though often cheaper to buy and insure upfront.
For businesses and drivers doing predictable urban or regional mileage with access to overnight charging, electric van running costs are, on average, the lowest of the three – once fuel, tax, insurance and congestion charges are all accounted for. For long-distance, rural or heavy-load operators, diesel often remains the more cost-effective and practical choice – at least until charging infrastructure and EV insurance premiums catch up further.
If you’d like to talk to us about Courier Van Insurance for your EV van or petrol/diesel van, BCD can help. We have a team of experts with an in-depth knowledge of the Courier industry who can search the market for a quote and cover that insures you at the right level.
2-5. https://www.loadsofvans.com/blog/unveiling-van-running-costs