Drivers are set to face an additional 18p per mile charge alongside Rachel Reeves’ upcoming pay-per-mile car tax plan, according to new analysis from NimbleFins. The financial comparison reveals that petrol drivers of average cars already spend about 17p per mile on fuel alone.
NimbleFins reports that the average miles per gallon (MPG) for petrol cars is 36. For vehicles up to 1400cc, fuel costs come to around 13p per mile, while engines between 1401cc and 2000cc push costs up to 14.5p per mile. Larger engines over 2000cc drive the fuel cost to approximately 18p per mile.
This comes as Labour Party Chancellor Rachel Reeves considers implementing a pay-per-mile tax specifically targeting electric vehicles (EVs) later this month. NimbleFins’ data shows that petrol fuel costs per mile range from 13p to 18p, while diesel vehicles face slightly lower costs, between 13p and 16p per mile.
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Compared to running an electric car, these fuel expenses are 50% to 90% higher—even when accounting for standard electricity tariffs. The variance in cost is directly linked to engine size; larger engines with higher cubic capacity (CCs) consume more fuel and deliver lower MPG, resulting in increased per-mile expenses.
Recent petrol prices have decreased slightly, dropping 0.58p from an average of 135.55p at the start of the month to 134.97p. Diesel prices also fell by 0.81p to 142.57p per litre. Filling a 55-litre family car now costs approximately £74.23 for petrol and £78.41 for diesel.
Supermarket fuel prices offer a slight discount, averaging 131.99p for petrol and 139.44p for diesel—around 3p cheaper than the UK average. This reduction means a full tank costs approximately £72.59 for petrol and £76.69 for diesel, saving drivers around £1.65 compared to average prices.
With the looming introduction of a pay-per-mile charge, drivers face increasing costs beyond fuel alone, especially those with larger, less fuel-efficient vehicles.