Car dealers have withdrawn discounts on new petrols since fuel prices rocketed - so is it now cheaper to choose electric?

Refuelling a car has become a lot more expensive in 2026. Drivers are currently paying around 41p a litre more for petrol than they were in February, while diesel prices have surged by around 57p due to the conflict between the US and Iran.That is adding roughly £23 to the cost of filling an average family car's 55-litre tank with petrol, and £32 for motorists driving diesel vehicles.Unsurprisingly, soaring fuel bills have accelerated motorists' appetite to switch to electric vehicles.The latest car registrations data shows that new petrol car sales are down 4.4 per cent on last year – that's some 35,600 units – and diesel has dropped back almost 8 per cent to 83,500 deliveries between January and the end of October. On the flipside, battery electric vehicle sales are up 30 per cent while plug-in hybrids have accelerated by 40 per cent. The AA's latest EV Readiness Index reveals that 60 out of 100 UK drivers are now considering making the switch, up from 47.5 a little over a year ago, in what it describes as a 'turning point' for the electric car market.So, with the decline in orders, you might reasonably expect dealers to be responding by heavily discounting their petrol and diesel stock to make these cars more appealing at a time when they have never been more expensive to run.However, analysis by Insider Car Deals, shared exclusively with This is Money, shows the exact opposite.So, does this mean a tipping point to switch to an EV to save a lot of money each month? Not necessarily... With fuel prices soaring and more drivers wanting to switch to EVs, you might reasonably expect dealers to have ramped up new petrol and diesel car discounts. But it's the opposite... Industry data shows petrol and diesel new car sales are down 4.4% and 7.8% respectfully, while battery electric vehicle registrations are up 30.4% year-on-yearAverage discounts on new petrol cars have slipped from 10.8 per cent in February to 10.2 per cent in November, while diesel discounts have fallen from 9.7 per cent to 8.5 per cent.Hybrid discounts, however, have remained flat at 11.3 per cent.With electric car sales hitting new heights and accounting for a third of all new cars joining Britain's roads last month, you might, logically, assume dealers are now trimming EV discounts to take advantage of this growing appetite for battery-powered driving.And this time, you would be correct.Average EV discounts have narrowed from 13 per cent at the start of the year to 11.1 per cent today.Having been forced to slash prices for years to make EVs more appealing at a time when Britons were reluctant to switch, reportedly costing manufacturers £5billion annually, according to the motor industry's trade body, it is easy to understand why carmakers are now looking to claw back some of those sizeable losses. It's the big question drivers want to know: when is the tipping point for when owning an electric car will be cheaper than petrolWill it cost you less per month if you go electric?For drivers, switching to electric while fuel prices remain so high does not guarantee an automatic saving, Insider Car Deals warns.It compared five popular models available today with petrol or diesel options alongside fully electric alternatives.The pricing experts calculated monthly PCP (personal contract purchase) payments based on typical discounted prices and manufacturer finance terms.PCP is a strong representative of the true cost of vehicle ownership, not only because it is the direction eight in ten new car buyers go but it factors depreciation into monthly costs. Insider Car Deals then added monthly 'fuelling' bills based on annual mileage of 7,000 miles.For the combustion-engined models, Insider Car Deals used the latest UK average pump prices. For EVs, it calculated costs using both a low-cost domestic charging tariff and the higher expense of relying solely on public rapid chargers.The findings showed that even for drivers with a home charger and access to cheaper off-peak electricity, only three of the EVs delivered a monthly saving.An electric Ford Puma Gen-E offered the biggest reward.The EV crossover costs £113 a month less than the petrol Puma, Britain's best-selling new car over the past three years, based on PCP payments and home charging on a domestic tariff.It was also the only example where using more expensive public rapid chargers still worked out cheaper than filling up with petrol, by £25 a month. MONTHLY COSTS TO RUN AN EV VERSUS A COMBUSTION ENGINE EQUIVALENT EV vs Petrol/Diesel models PCP monthly payment: electric / petrol or diesel Total monthly cost, PCP + EV charged at home Total monthly cost, PCP + EV charged via public networkTotal monthly cost, PCP + petrol/diesel Ford Puma Gen-E v Puma petrol £225 / £261 £235 £323£348 BMW iX1 v X1 diesel £341 / £338 £352 £453£434 Audi Q6 e-tron v Q5 petrol £571 / £524 £584 £699£637 Peugeot e-308 v 308 Hybrid £381 / £314 £393 £492£393 Vauxhall Corsa Electric v Corsa petrol £331 / £204 £343 £447£296 Each car is the entry-level or closest-matching trim available in both electric and petrol or diesel form – a single version, not a range average. PCP payments are Insider Car Deals calculations at a typical discounted price, using each manufacturer's current APR, deposit contribution and guaranteed future value, with a 15% customer deposit (20% on the Corsa) and the same term and annual mileage within each pair. Totals are the PCP payment plus fuel or charging at 7,000 miles a year; the cheapest option for each car is in bold. Running costs use official WLTP economy figures, petrol at 172p and diesel at 198p a litre (DESNZ, week of 2 November 2026), home off-peak electricity at 8p/kWh and public rapid charging at 79p/kWh, and exclude insurance, road tax, servicing and home-charger installation. The Audi Q6 e-tron is the electric counterpart of the Q5 rather than the same model. The Ford Puma Gen-E EV (right) costs £113 a month less than the petrol Puma (left), based on PCP payments and home charging on a domestic tariff. It was also £25 a month cheaper if charged using public rapid chargersFor buyers shopping for a compact family SUV, the electric BMW iX1 proved £82 a month cheaper than the diesel X1 when charged off-peak at home, though it became £19 a month more expensive when relying solely on rapid public chargers.Comparing an Audi Q6 e-tron with a petrol-powered Q5, the combustion-engined model was £58 a month more expensive if the EV owner could charge at home. However, it became £62 a month cheaper if the Q6 driver relied exclusively on public charging.In the Peugeot e-308 versus petrol 308 comparison, both models worked out at the same monthly cost of £393 when the EV was charged at home. But without a home charger, an e-308 owner would pay almost £100 more per month to go electric.The final example, comparing the Vauxhall Corsa Electric with the petrol Corsa, delivered the biggest saving for the fossil-fuel model.Even when charged off-peak at home, the petrol version is £47 a month cheaper, including PCP payments. That advantage widens to £150 a month if the EV owner depends entirely on more expensive public chargers.Ten best deals on petrol and diesel cars right nowFor motorists who have no intention of going electric and want to secure a healthy discount to offset the soaring cost of filling up, there are still some substantial savings to be had on petrol, diesel and hybrid models.Insider Car Deals mystery-shops franchised dealers to measure the gap between the discounts retailers initially advertise and the lowest prices they are actually willing to accept.That discount gap currently averages £1,124 across the ten cars below. The biggest saving you can negotiate on a new combustion engine car right now is almost two fifths off the retail price of a Vauxhall Grandland family SUV1. Vauxhall Grandland Petrol – Save up to £14,686 (38.2%)Example trim: 1.2 Turbo Hybrid 145 GriffinRetail price: £31,995Insider Car Deals price*: £23,628 (£8,367 saving)Illustrative PCP monthly**: £308 / 11.9% APRVauxhall is heavily incentivising petrol Grandland models despite rising fuel costs. PCP interest is steep at 11.9 per cent APR, but generous manufacturer deposit contributions and substantial dealer discounts slash thousands from the asking price, making this family SUV one of the biggest bargains currently available. Insider Car Deals says buyers can haggle up to a quarter off the price of a new petrol Peugeot 2008 right now2. Peugeot 2008 Petrol – Save up to £7,636 (25.9%)Example trim: 1.2 PureTech AllureRetail price: £25,765Insider Car Deals price *: £19,806 (£5,959 saving)Illustrative PCP monthly**: £265 / 9.9% APRPeugeot has trimmed some direct support for the 2008, but buyers can still access deposit contributions worth up to £4,450 alongside significant dealer discounts. The 9.9 per cent APR rate is high, though savings of more than 25 per cent help offset the cost of finance. Insider Car Deals says discounts on new Mercedes models are rare, so a £7,750 saving on the CLA Coupe petrol stand out3. Mercedes CLA Coupe Petrol – Save up to £7,750 (24.5%)Example trim: CLA 180 Sport EditionRetail price: £33,100Insider Car Deals price*: £25,350 (£7,750 saving)Illustrative PCP monthly**: £224 / 4.9% APRBig discounts are unusual on Mercedes models, says Insider Car Deals, particularly since the brand adopted a direct-sales approach. However, buyers of CLA Coupe petrol versions can currently save up to £7,750, making this stylish premium saloon significantly more affordable than normal. Audi's popular family estate, the A6 Avant, can be had with more than a fifth off the retail price of its plug-in hybrid variant4. Audi A6 Avant Plug-in Hybrid – Save up to £14,546 (22.9%)Example trim: 2.0 eHYBRID 299 Quattro S Line S-tronicRetail price: £64,515Insider Car Deals price*: £49,983 (£14,532 saving)Illustrative PCP monthly**: £487 / 5.9% APRA long-time favourite among estate car buyers, the A6 Avant remains a compelling alternative to a premium SUV. Strong finance support and generous dealer discounts combine to cut almost 23 per cent from the price of this plug-in hybrid model. The Skoda Kamiq is one of the best compact SUVs on the market. Insider Car Deals says you can get £6k off the price of a new model with a three-cylinder 1.0-litre petrol engine5. Skoda Kamiq Petrol – Save up to £6,040 (22.4%) Example trim: 1.0 TSI 95 SE EditionRetail price: £25,730Insider Car Deals price*: £19,888 (£5,842 saving)Illustrative PCP monthly**: £212 / 6.4% APRSkoda has boosted PCP deposit contributions to make Kamiq deals more attractive. Some retailers focus on manufacturer incentives rather than their own discounts, meaning buyers who negotiate confidently could unlock considerably bigger savings than those first offered. Sales of family hatchbacks are in decline, especially those with diesel engines. Which might explain this 21% discount on a new Peugeot 208 oil burner6. Peugeot 308 Hatchback Diesel – Save up to £6,672 (21.4%)Example trim: 1.5 BlueHDi 130 AllureRetail price: £30,755Insider Car Deals price*: £24,496 (£6,259 saving)Illustrative PCP monthly**: £332 / 9.9% APRThe diesel Peugeot 308 is available with more than double the average discount currently offered on new diesel cars. Strong dealer savings and generous PCP support make it a standout deal, though Peugeot's incentives can change quickly as market conditions shift. A practical load-lugger, the Skoda Octavia has been a top choice for decades. This frugal diesel estate can be had with 20% off the list price7. Skoda Octavia Estate Diesel – Save up to £7,866 (20.8%)Example trim: 2.0 TDI 116 SE TechnologyRetail price: £32,270Insider Car Deals price*: £25,950 (£6,320 saving)Illustrative PCP monthly**: £268 / 6.4% APRDealer discounts on diesel Octavia models have increased, particularly for buyers prepared to negotiate. Those savings are complemented by a competitive 6.4 per cent APR PCP deal and a generous deposit contribution, making this practical estate an attractive value proposition. Ford is offering up to £5,000 in manufacturer-level incentives towards sales of PHEV Kugas - and with haggling and finance contributions in play, you can knock a fifth off the retail price8. Ford Kuga Plug-in Hybrid – Save up to £8,385 (20.4%)Example trim: 2.5 Duratec 243 PHEV St-LineRetail price: £39,320Insider Car Deals price*: £31,592 (£7,728 saving)Illustrative PCP monthly**: £353 / 2.9% APRFord is pushing hard to boost Kuga sales, backing the SUV with up to £5,000 in manufacturer incentives and a low 2.9 per cent APR PCP deal. Dealers may be reluctant to discount further but additional savings are often available to informed buyers.Even some of the biggest names in motoring are available with discounts of up to 20% right now. That includes the petrol VW Golf9. Volkswagen Golf Petrol – Save up to £6,247 (20.2%)Example trim: 1.5 TSI 115PS MatchRetail price: £29,280Insider Car Deals price*: £23,256 (£6,024 saving)Illustrative PCP monthly**: £255 / 7.9% APRThe Golf's 7.9 per cent APR finance rate is relatively expensive, though Volkswagen helps soften the blow with generous deposit contributions. Dealer discounts advertised online can be modest, but buyers who negotiate face-to-face can often secure significantly larger savings. As with Mercedes, Toyota rarely discounts new models, especially popular small cars like the Yaris. Which makes this near-£5,500 saving all the more impressive10. Toyota Yaris Hybrid – Save up to £5,453 (19.5%)Example trim: 1.5 Hybrid DesignRetail price: £25,345Insider Car Deals price*: £20,158 (£5,187 saving)Illustrative PCP monthly**: £199 / 6.9% APRDiscounts approaching 20 per cent are rare on a Toyota Yaris. Alongside generous PCP deposit contributions, some dealers are willing to offer additional savings beyond initial quotes, meaning well-prepared buyers may be able to secure a stronger deal than expected. Buying a new car? Save time and don't overpay Buying a new car can mean hours researching prices, comparing finance offers and negotiating with dealers. Insider Car Deals can do it all for you.Its Bespoke To You personal car-buying service helps you choose the right car, reveals the best discount, then negotiates and arranges the deal with a dealer on your behalf.Prefer to negotiate yourself? The Personal Deal Sheet gives DIY negotiators the target price, dealer discount, manufacturer savings and PCP finance offers for the exact car they want.Car buyers benefit from over 23 years experience of independent market research and mystery shopping of UK dealers, where Insider Car Deals typically uncovers a significant gap between the discount dealers want to offer you and what is actually achievable.Insider Car Deals does not sell cars or receive commission from dealers or manufacturers. Customers pay for its services, so its advice remains independent. Rated 4.9 stars on Google Reviews.Find out more at insidercardeals.co.uk Insider Car Deals prices are based on independent real-world market research by Insider Car Deals, including mystery shopping UK franchised dealers. Insider Car Deals is independent and is not paid commission by dealers or manufacturers. Its Bespoke To You service can research and arrange a new-car purchase on a customer's behalf, while buyers who prefer to negotiate themselves can use its pricing research to establish what they should realistically aim to pay.**Illustrative PCP monthly payments relate to each specified trim. All PCP monthly payments shown are illustrative only and do not constitute an offer or financial advice. Figures are based on manufacturers' published PCP terms and typically assume a four-year term, 8,000-10,000 miles per year, a 15% customer deposit and any applicable manufacturer finance contribution, unless stated otherwise. A Guaranteed Future Value (GFV) or final payment may be required to keep the vehicle at the end of the agreement. Always request a full written quotation from a supplying dealer before committing to purchase.Fuel prices are UK averages from the Department for Energy Security and Net Zero: February 2026 monthly averages of 131.4p a litre for petrol and 141.2p for diesel, against weekly averages of 172.8p and 198.6p for the week of November 2, 2026. Running-cost comparisons use these current pump prices, official WLTP fuel and energy-consumption figures, and assumed electricity costs of 8p/kWh (home off-peak), 26p/kWh (home standard tariff) and 79p/kWh (public rapid charging). They exclude insurance, road tax, servicing and the cost of installing a home charger. CARS & MOTORING: ON TEST