Quarterly EV Cost Savings Report
NEW DATA: In All 50 States, Driving an EV Saves on Fuel Costs
2024 Q3: Despite Summer Drop in Gas Prices, EVs Save Money in all 50 States in Q3
12/16/24
Coltura analyzed data from fiscal quarter 3 (July-September 2024) to understand recent trends in the price per mile of operating an electric versus gasoline vehicle.
Results: Substantial Savings Hold in 2024’s Third Quarter
On average, US EV drivers saved 7.4 cents per mile compared to those driving gas-powered vehicles on fuel alone, which translates to about $90/month for 1,200 miles (around the US average), or nearly $1,100 a year. These savings are down 0.8 cents per mile from 2024 Q2, due to the summer drop in gas prices. Nonetheless, 2024 Q3 saw positive fuel savings in all 50 states and Washington DC.
When taking into account decreased maintenance costs for driving an EV, the total savings are even higher at 11.3 cents per mile or $135 per month. Drivers switching from a gas-powered pickup or SUV to an EV saved 8.3 cents per mile or $100 per month on fuel alone due to the low fuel efficiency of larger gas-powered cars. In Washington state, where gas prices are high and utility rates are low, drivers saved 11.6 cents per mile, or $140 per month on fuel alone.
In calculating fuel savings from switching to an EV, there are two main levers to consider: gas prices and utility rates. As seen in the chart below, gas prices (left axis) have fluctuated dramatically since 2020 due to seasonal demand, crude oil supply and geopolitical factors. In the meantime, utility rates (right axis) have steadily increased to match inflation.
In 2024’s third quarter, gas prices dropped slightly while utility rates held steady. This divergence highlights a key consideration for prospective EV owners: while gas prices vary unpredictably, utility rates follow a more stable trend. This can make fuel cost savings from switching to an EV more consistent over time, even if gasoline becomes temporarily cheaper. As consumers weigh the cost of refueling their vehicles, the long-term predictability of electricity rates may make EV ownership more attractive from a budgeting perspective, offering a steady alternative to the volatile gasoline market.
Methodology:
Cost per mile of gasoline vehicles is calculated by multiplying the average gasoline cost per gallon of the state (from GasBuddy for state averages, from EIA for US average) by the average gallons per mile of light-duty cars, light-duty trucks, and the overall car stock (from the EIA). The average MPG of light-duty cars, light-duty trucks, and the overall car stock used for this calculation are 30.66, 22.13, and 25.29, respectively.
Cost per mile of electric vehicles is calculated based on home charging and public charging. In line with Argonne National Laboratory, we assume home charging accounts for 80% of EV charging, and the remaining charging is done at public chargers at a cost of $0.29 per kWh. Cost per mile of home charging is calculated by multiplying the state's residential utility rate (from EIA) by the average kWh per mile of light-duty cars, trucks, and the overall stock (from the EIA). The average kWh per mile of light-duty EV cars, light-duty EV trucks, and light-duty EVs overall used for this calculation are 0.30, 0.36, and 0.31, respectively.
EV savings per mile is calculated as the difference between the cost per mile of gasoline and the cost per mile of electric vehicles. If "Fuel and Maintenance Savings" is selected, 3 cents per mile are added to EV cost savings to account for maintenance (Consumer Reports).
For measures relating to annual and monthly cost savings, savings per mile is multiplied by an annual VMT of 12,671, 13,357, and 13,012 for cars, light-duty trucks, and overall vehicles for the average US driver. Savings per mile is multiplied by an annual VMT of 45,012, 33,242, and 36,805 for cars, light-duty trucks, and overall vehicles for Superuser drivers, i.e. drivers in the top 10% for US gasoline consumption. These average VMT figures are calculated using Coltura's representative sample of light-duty vehicle owners, where each owner is assigned the VMT of the most driven car they own in order to account for multiple household members driving multiple vehicles registered to one person.
2024 Q2: Drivers in all 50 states are experiencing significant fuel savings from driving an electric vehicle
8/14/24
Drivers in all 50 states are experiencing significant fuel savings from driving an electric vehicle. New Coltura analysis reveals the magnitude of these savings on a per-mile basis. In Q2 2024, based on US average gasoline prices, utility rates, and fuel efficiency, an American driver saves 8.1 cents per mile on fuel by driving an EV instead of a gas car, up from 7.6 cents at the end of 2023. The average U.S. EV driver saved $100 a month on fuel and maintenance in the second quarter. A gasoline Superuser (a person in the top 10% of US gasoline consumption) who uses more than 100 gallons a month would save on average $400 on fuel and maintenance with an EV.
Coltura’s new analysis also breaks this down by state and by vehicle type. Per mile, the greatest savings are from drivers in Washington state — because of its high gas prices and low electricity prices — where drivers can save 13.1 cents per mile on fuel, which translates to $120 a month on average. Electricity is cheaper than gasoline in all 50 states and DC, for all vehicle types. Even in a state with relatively low gas costs and high electricity rates, such as Massachusetts, fuel savings for switching to an EV are 4.7 cents per mile, $44 per month on average.
Savings vary based on vehicle type. Coltura’s analysis assumes drivers will switch to an EV of similar size, e.g. from a gas pickup to an electric pickup or a gas sedan to an electric one. Drivers of large SUVs and pickup trucks have the most to gain in per-mile fuel savings due to the poor fuel efficiency of bigger gasoline-powered cars. In Q2 2024, large SUV/pickup truck drivers save 9.1 cents per mile on fuel by switching to an EV, on average. Drivers of smaller, more fuel efficient gasoline cars would save on average 5.8 cents per mile driving an EV.
The average US driver spends 3.4% of their household income on gasoline, while high-mileage drivers (those in the top 10% for gasoline consumption, or “Gasoline Superusers”) spend on average 8.4% of their household income (with many spending 30% and above) to fill up their cars with gasoline.
Annual EV Fuel and Maintenance Savings
The average American driver clocks 11,011 miles a year. Given the average per-mile fuel savings of 8.1 cents, along with savings due to maintenance (maintenance savings are 3 cents per mile, per Consumer Reports), the average driver would save over $1,200 a year by driving an EV.
Gasoline Superusers drive on average 44,302 miles a year due various factors like long commutes, jobs that require frequent travel, and living in rural areas far from daily conveniences. We found these drivers would benefit the most from switching to an EV in terms of cost savings — saving nearly $5,000 a year on fuel and maintenance.
Top 10 States for Annual Fuel and Maintenance Savings from an EV
Drivers in the following ten states experience the most significant reductions in fuel and maintenance costs. These savings were calculated on an annual basis.
Average driver (11,011 miles a year):
Gasoline Superuser driver (top 10% of drivers in terms of gasoline use):
EV Fuel Savings for the Most Popular Long-Distance Commutes in the US
We analyzed some of the most popular commutes in the US to understand the potential cost savings for people driving these routes. For drivers with some of the longest and most frequent commutes, the savings from switching to EVs are significant. By calculating the cost savings per trip, we aim to highlight how substantial the financial benefits can be for those who transition to EVs for their regular commutes.
From | To | Miles (roundtrip) | EV Fuel Savings |
Los Angeles | San Diego | 250 | $25.22 |
San Francisco | San Jose | 115 | $11.60 |
Dallas | Fort Worth | 65 | $4.46 |
Miami | Fort Lauderdale | 60 | $4.91 |
Philadelphia | New York City | 200 | $17.12 |
Houston | Galveston | 100 | $6.87 |
Baltimore | Washington, D.C. | 80 | $6.53 |
Chicago | Milwaukee | 185 | $17.55 |
Conclusion
Electric vehicle adoption causes substantial household cost savings on fuel and maintenance, particularly for the households that use the most gasoline. These savings make EVs more affordable to consumers and should result in wider adoption.
EV cost savings also underscore the broader economic benefits of EV adoption. The savings create potential for increased consumer spending in other areas, boosting local economies and creating jobs in sectors beyond the automotive industry. Additionally, the reduced reliance on fossil fuels contributes to energy security, decreasing the nation's vulnerability to global oil market fluctuations. This transition not only supports individual financial health but also strengthens the overall economic resilience of communities, making a compelling case for accelerating the shift to electric vehicles nationwide.
Methodology:
Cost per mile of gasoline vehicles is calculated by multiplying the average gasoline cost per gallon of the state (from GasBuddy for state averages, from EIA for US average) by the average gallons per mile of light-duty cars, light-duty trucks, and the overall car stock (from the EIA). The average MPG of light-duty cars, light-duty trucks, and the overall car stock used for this calculation are 30.66, 22.13, and 25.29, respectively.
Cost per mile of electric vehicles is calculated based on home charging and public charging. In line with Argonne National Laboratory, we assume home charging accounts for 80% of EV charging, and the remaining charging is done at public chargers at a cost of $0.29 per kWh. Cost per mile of home charging is calculated by multiplying the state's residential utility rate (from EIA) by the average kWh per mile of light-duty cars, trucks, and the overall stock (from the EIA). The average kWh per mile of light-duty EV cars, light-duty EV trucks, and light-duty EVs overall used for this calculation are 0.30, 0.36, and 0.31, respectively.
EV savings per mile is calculated as the difference between the cost per mile of gasoline and the cost per mile of electric vehicles. If "Fuel and Maintenance Savings" is selected, 3 cents per mile are added to EV cost savings to account for maintenance (Consumer Reports).
For measures relating to annual and monthly cost savings, savings per mile is multiplied by an annual VMT of 10,767, 11,264, and 11,011 for cars, light-duty trucks, and overall vehicles for the average US driver. Savings per mile is multiplied by an annual VMT of 49,865, 40,752, and 44,302 for cars, light-duty trucks, and overall vehicles for Superuser drivers, i.e. drivers in the top 10% for US gasoline consumption. These average VMT figures are calculated using Coltura's representative sample of light-duty vehicle owners, where each owner is assigned the VMT of the most driven car they own in order to account for multiple household members driving multiple vehicles registered to one person.