Fueling Costs Rise for Both ICE and Electric Vehicles in Q3 2022

Mid-priced EVs cost their drivers $0.50 more in Q3, Mid-priced ICE up only $0.16

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East Lansing, MI–October 10, 2022: In the third quarter, the cost to fuel traditional vehicles powered by internal combustion engines (ICE) rose modestly from Q2. However, the $0.16 increase is notably less than the $0.50 increase in the cost to fuel an electric vehicle (EV) at home. It was also in stark contrast to Q2’s rapid price rise, when the cost to fuel an ICE vehicle grew by nearly $2.00 per 100 miles.

What changed? Anderson Economic Group’s Q3 analysis shows that gasoline and diesel prices reached a peak and began to decline during the quarter. As gas and diesel eased out of record territory across the country, “ICE vehicle fueling costs began to compare more favorably to their EV counterparts,” explains AEG consultant Alston D’Souza. At the same time, “summer peak-rates for residential electric drove up the cost of charging an electric vehicle at home.”

FINDINGS

Here are AEG’s key findings for the four major auto segments:

1. Mid-priced cars–ICE vehicles continued the recent trend of being more economical than mid-priced EVs charged commercially, while proving more costly than EVs charged mostly at home.
2. Luxury cars-Consumers driving more expensive vehicles still saw an EV cost advantage when refueling, with premium gas prices up about $1 per 100 miles in Q3 compared to a $0.53 or less increase to charge an electric vehicle.
3. Pickup trucks-This segment continues to lack enough electric vehicles to conduct a meaningful comparison.
4. Entry-priced cars–This segment also continues to lack enough electric vehicles to conduct a meaningful comparison.

APPROACH

Anderson Economic Group calculates all four categories of costs for fueling EVs and ICE vehicles across benchmarks representing real-world U.S. driving conditions, including:

1. The cost of underlying energy (gas, diesel, electric)
2. State excise taxes charged for road maintenance
3. The cost to operate a pump or charger
4. The cost to drive to a fueling station (deadhead miles)

All use cases reflect 12,000 miles/year, with the cost of residential charging equipment amortized over five years. Calculations are based on energy prices and taxes in the state of Michigan. Benchmarks for ICE vehicle drivers assume the use of commercial gas stations. For EV drivers, we consider both drivers who routinely charge at home and those who rely primarily on commercial chargers.

For more on methodology, see the study’s 2nd edition: AndersonEconomicGroup.com/second-edition-real-world-cost-of-fueling-evs-and-ice-vehicles-2/

Obtaining AEG’s report on the cost of fueling EVs and ICE vehicles:

The study’s 2nd edition (2021) is available at: AndersonEconomicGroup.com/second-edition-real-world-cost-of-fueling-evs-and-ice-vehicles

Related content and a FAQ are also available at: AndersonEconomicGroup.com/real-world-electric-vehicle-fueling-costs-may-surprise-new-ev-drivers

Also see the company’s Automotive Dashboard, which tracks auto industry and other economic metrics: AndersonEconomicGroup.com/auto-dashboard

 

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See Also:

• The AEG Automotive Dashboard