Rising fuel prices are once again nudging UK drivers towards electric cars, with fresh data showing a sharp increase in interest across both leasing and retail markets.
As analysis by the RAC Foundation reveals recent price rises have cost UK motorists an additional £307m for petrol and diesel, figures from Octopus Electric Vehicles show that enquiries for EV leasing have jumped by 36 per cent since the start of the conflict in the Middle East. At the same time, data from Autotrader points to a similar trend among car buyers, with new EV leads up 28 per cent in less than a month and used EV enquiries rising by 15 per cent.
The backdrop is a noticeable rise in fuel prices, with petrol climbing to £1.48 per litre and diesel reaching £1.73 per litre – among the highest levels seen in the past year. While still below the peaks recorded in 2022, the latest increases appear to be having an immediate effect on consumer behaviour.
Autotrader’s data shows that used EVs aged between zero and five years now account for 19.5 per cent of all leads in that segment – the highest share on record. That’s particularly striking given that electric cars still make up only around 5 per cent of vehicles currently on UK roads.
Industry figures suggest that drivers are increasingly looking for ways to reduce exposure to fluctuating fuel costs, with EVs offering more predictable running expenses. Electricity prices can be fixed through tariffs, and smart charging can further reduce costs by shifting energy use to cheaper, off-peak periods.
On tariffs such as Octopus’s Intelligent Octopus Go, drivers can save hundreds of pounds a year compared with running a petrol or diesel car, according to the company, thanks to lower overnight charging rates.
The shift towards electric is also reflected in the wider new car market, where EVs now account for around one in four new registrations in the UK – a share that continues to grow as more models come to market and infrastructure improves.
“Drivers are feeling the pinch every time they fill up their tank,” said Gurjeet Grewal, CEO of Octopus Electric Vehicles. “We’re seeing a real shift – people want certainty over their bills. Leasing an electric car gives drivers a simple, affordable way to break free from unpredictable fuel prices.”
Autotrader is seeing similar behaviour among buyers browsing its platform. Ian Plummer, chief customer officer at Autotrader, said: “Even though petrol prices aren’t anywhere near the extremes of 2022 yet, the Iran conflict has clearly moved fuel costs to the front of buyers’ minds. Our data shows a sharp rise in both new and used EV leads since the war began at the end of February, with used EV enquiries hitting record levels on the Autotrader marketplace.”
The trend extends beyond cars. Octopus Energy reported a 27 per cent increase in solar enquiries in the early days of the conflict, suggesting that households are also looking more broadly at ways to manage their energy costs.
With global energy markets remaining uncertain, the latest figures point to a growing link between fuel price volatility and demand for electric vehicles – with drivers increasingly drawn to the promise of lower and more predictable running costs.
