Twelve million motorists are planning to dodge Rishi Sunak’s fuel duty increase by turning to electric cars.
The Chancellor is expected to hike fuel duty by at least 5p a litre to recoup some of the £300billion he has spent easing the economic downturn caused by Covid.
But the only tax motorists need pay to top up batteries is five per cent VAT.
That means average costs of 3.9p a mile rather than the 9.2p a mile to run a petrol engined Ford Fiesta saving around £330 a year.
A survey by comparison website Uswitch shows that 12 million drivers are thinking of going electric over the next two years.
Sarah Broomfield of Uswitch said: “Electric vehicles are increasingly popular and cost far less to fuel than a petrol or diesel car.
“But charging costs vary depending on your energy tariff. You should switch to a competitive fixed-term deal.”
Electric cars are more expensive than petrol rivals but there is a £3,000 government subsidy for buying a new one.
Nearly 40,000 battery powered cars were sold in the UK between January and July, compared with 14,000 in the same period last year.
Modern electric vehicles can go an average of 213 miles on a single charge and fuelling at home can save £2.35 per 100 miles on charging points.
Sales of new diesel, petrol and hybrid vehicles are to be banned from 2035.