Electric Van vs Diesel Running Costs: Per Mile and Per Year

At this week’s prices an electric van costs 10.8p a mile to charge at home and 10.1p at a depot, against 25.2p for a diesel van at 36 mpg and 199.22p a litre. Over 15,000 miles that is a gap of about £2,150 to £2,260 a year, but only if the van is not charged on public rapid chargers.

Are electric vans cheaper to run than diesel vans?

Yes on energy, if most charging happens at home or a depot, and no if it happens on rapid chargers. The table below uses October 2026 prices and 15,000 miles a year, which is an example. The diesel line is 199.22p x 4.54609 / 36 mpg, using the DESNZ weekly road fuel prices for the week of 26 October 2026. 36 mpg is our assumption for a diesel van. Use your own fleet’s figure.

Energy source	Price	Cost per mile	Per year, 15,000 miles	Against diesel
Diesel, 36 mpg	199.22p a litre	25.2p	£3,774
Electric, depot	24.51p a kWh	10.1p	£1,513	£2,261 less
Electric, home	26.32p a kWh	10.8p	£1,625	£2,149 less
Electric, 80% depot and 20% rapid	blended	14.6p	£2,186	£1,588 less
Electric, public slow and fast	54p a kWh	22.2p	£3,333	£441 less
Electric, public rapid	79p a kWh	32.5p	£4,877	£1,103 more

The electric lines divide the price per kWh by 2.43 miles per kWh, the Department for Transport’s 2026 average for an electric light goods vehicle (TAG data book v2.03). It is a government benchmark, not a named van, and heavier vans use more. Electricity prices are the Ofgem cap (26.32p, no VAT until 30 June 2027), the DESNZ business average (24.51p, April to June 2026, excluding VAT) and the Zapmap Price Index (September 2026, including VAT). Charging losses are left out because there is no UK government figure for them.

A VAT-registered business can normally reclaim VAT on business fuel and charging. With VAT taken off, diesel is 21.0p a mile and rapid charging is 27.1p, so the order does not change.

Is road tax the same for electric and diesel vans?

Yes, now. Vehicle Excise Duty for a van up to 3,500kg is £360 a year in 2026/27, and gov.uk says the rate also covers zero emission vehicles. Most electric vans moved to the standard rate when VED for zero emission vehicles began in April 2025. VED therefore drops out of the comparison.

Is there a tax difference for company vans?

Yes, and it is the biggest tax gap. The van benefit charge for 2026/27 is £4,170 for a diesel van made available for private use, and nil for a zero emission van. If the employer also pays for private fuel, there is a van fuel benefit charge of £798, again nil for zero emission vans. These are in the gov.uk notice.

Employee tax rate	Tax on £4,170 van benefit	Tax on £798 fuel benefit
20%	£834	£159.60
40%	£1,668	£319.20

The employee pays this income tax, not the company, and it applies only where the van is available for private use beyond ordinary commuting and the insignificant. A van used only for work, or for work and ordinary commuting, has none. Our guide to the van benefit charge for 2026/27 covers when it applies.

Is there a grant for an electric van?

Yes, for eligible models: up to £2,500 for a small van and up to £5,000 for a large one in 2026/27, from the plug-in van grant. The scheme is scheduled to run to 31 March 2030 or until the funds run out, and the amounts are maximums. We have not quoted van prices, because they vary by model, so the break-even on purchase price is for the electric van break-even calculator.

What does an electric van not save?

Energy and some tax are the only costs in this article. We have not compared the purchase price, servicing, tyres, insurance or resale value, because we have no verified figures for them. Add your own quotes before deciding. The lower running cost has to pay back whatever extra you spend to buy the van, less any grant.

How do I cut the running costs of the diesel vans I keep?

Most fleets will run diesel vans for years yet, and a lower top speed is the biggest lever you hold. The Department for Transport’s fuel consumption curves (TAG data book v2.03) show a diesel van using 14.5% less fuel per mile at 60 mph than at 68 mph. The curve for diesel vans stops at 68 mph, so we quote nothing higher.

Take a diesel van doing 15,000 miles at £3,774 a year. If every mile moved from 68 to 60 mph, the fuel bill would fall by 14.5%, or £547 (our calculation). That is a ceiling, because few vans drive every mile at 68. If a third of the miles were driven at 68 mph and moved to 60, the saving would be about £182 a van a year. The real figure depends on the share of your miles above the cap.

There is no equivalent Department for Transport curve for electric vans, so we do not put a percentage on speed for them. For more, see 70 vs 60 mph fuel cost for a van fleet.

Frequently Asked Questions

How much cheaper is an electric van to run than a diesel van?

At home or a depot, about 14 to 15p a mile cheaper on energy: 10.1p to 10.8p against 25.2p for diesel. That is about £2,150 to £2,260 a year at 15,000 miles. Public rapid charging at 79p a kWh costs 32.5p a mile, more than diesel.

Do electric vans pay road tax?

Yes. A van up to 3,500kg pays £360 a year in Vehicle Excise Duty in 2026/27, whether it is diesel or zero emission.

Is company van tax lower for an electric van?

Yes. The van benefit charge is £4,170 for diesel and nil for a zero emission van in 2026/27. At 20% that is £834 a year saved for the driver, and £1,668 at 40%.

Is a plug-in grant available for electric vans?

Yes, up to £2,500 for small vans and £5,000 for large vans in 2026/27, on eligible models while funds last. The scheme is scheduled to run to 31 March 2030.

Does speed affect electric van running costs?

Probably, as it does for any vehicle, but the Department for Transport has no speed curve for electric vans, so we cannot give a figure. For diesel vans it shows 14.5% less fuel per mile at 60 mph than 68 mph.

Cut your fleet’s fuel bill

Test your own mileage and charging split in the electric van break-even calculator or the EV charging cost calculator. To see what a lower speed does for your diesel vans, use the speed and fuel calculator.

A speed cap works on every journey without the driver having to remember it. The Department for Transport’s fuel consumption curves (TAG data book v2.03) show a diesel van using 14.5% less fuel per mile at 60 mph than at 68 mph. How much of that reaches your bill depends on the share of your miles driven above the cap.

Talk to us. AutoKontrol has made speed limiters in Britain since 1985, with nationwide installation where we come to you. Book a free consultation or get a quote.