EVs Cost Nearly 3 Times Less to Fuel as Gas Stays Near $4 After Iran War

Q: Are soaring gas prices creating a new economic divide between those who can afford EVs and those who cannot?

Yes. Soaring gas prices are widening a practical economic divide between households that can access EVs and those that cannot. The math has shifted sharply. With U.S. gasoline around $4 to $4.55 a gallon, driving 100 miles in a 25-m.p.g. gas car costs roughly $16 to $18, while a typical EV charged at home costs about $0.05 a mile, or around $693 a year for the average driver. That can mean annual fuel savings near $1,700, plus lower maintenance costs over time. For households that already own an EV or can buy one, the savings are now much larger and more durable than they were when gas was below $3. But the people hit hardest by high gas prices are often the least able to make that switch. Lower-income households spend a much larger share of income on fuel, cut driving more, and still pay more overall. Many are locked into older, less efficient cars and cannot easily finance a newer vehicle. New EV prices have fallen and incentives have narrowed the gap, but the average new EV still remains out of reach for many buyers, especially after federal purchase credits expired in 2025. The divide is also about charging. The biggest savings come from home charging, yet renters, apartment dwellers, and households without off-street parking often rely on public charging, which is much more expensive and can erase part of the advantage. So high gas prices are not creating the divide from scratch, but they are making an existing inequality more visible and more costly.

3 articles · Updated · The New York Times · Jun 16

$16-plus now buys 100 miles in a typical 25-mpg gasoline car, leaving fueling costs almost three times higher than for a comparable EV.
U.S. gas prices surged to $4.50 a gallon in May from below $3 in January after the Iran war, and even after easing they remain close to $4.
At those prices, charging an EV at a fast charger is roughly on par with refueling a 25-mpg car, while home charging still undercuts even a 52-mpg Toyota Prius hybrid.
The result is a much wider EV savings gap than at the start of 2026, one the report says is unlikely to close soon.