Rising fuel costs could prompt more than two in five non-EV car owners to consider switching to electric vehicles, according to new research from Cazoo & Motors.
Its latest Consumer Insight Panel, which polled 2,008 car buying decision makers, found that 44% of non-EV owners would seriously consider an electric alternative if fuel prices hit or exceed £2.00 per litre.
The study identified £1.99 per litre as the tipping point at which petrol, diesel and hybrid drivers start to consider moving to an EV. However, 29% of respondents said rising fuel prices would not influence their decision to switch.
Fuel prices drive EV interest
The findings come as UK pump prices have risen in recent weeks, with petrol averaging more than 157p per litre and diesel at 190p.
Lucy Tugby, marketing director of Motors & Cazoo, said: “Our research shows just how sensitive petrol, diesel and hybrid car owners are to rising fuel costs and how many will start to view electric as a viable alternative if average pump prices breach £2.00 per litre.
“For dealers this reinforces the importance of factoring in affordability concerns in their conversations with customers and taking the time to understand their typical usage.”
The research also found that 54% of non-EV owners would be more likely to switch to electric if fuel prices rise significantly over the next 12 months. Those most likely to switch are men, at 58%, motorists aged under 45, at 64%, and households earning more than £60,000, at 67%.
EV path to economic resilience
Separate analysis from New Automotive suggests rising fuel costs are not leading motorists to cut back but instead encouraging them to buy sooner in an effort to avoid further price rises.
According to its analysis, petrol prices rose by around 20% in March to 158p per litre, while diesel climbed 35% from 141p per litre to more than 190p. On March 3 alone, the day after US strikes on Iran, petrol sales were 30% above typical February levels.
New Automotive said the pattern highlights how dependent households and businesses remain on road transport, leaving many drivers with little flexibility to reduce fuel consumption when prices spike.
Ben Nelmes, CEO of New Automotive, said: “President Trump’s attacks on Iran at the start of March triggered panic buying at UK fuel stations. Motorists know that fuel prices rise quickly and fall slowly. Most drivers cannot just drive less, and so the only option is to try to fill the tank before prices soar. Ministers should focus on the only way to bring the cost of motoring back under control, which is to get as many electric cars on the road as possible.”
New Automotive argued that short-term measures such as fuel duty cuts impose a heavy cost on the Treasury while doing little to reduce dependence on imported fossil fuels. It said faster EV adoption offers a more durable answer, positioning the UK’s transition to electric vehicles as an issue of economic resilience as well as environmental policy.
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