Is Gas Cheaper Than Electric? Cost Comparison 2025

As fuel prices and electric vehicle (EV) adoption evolve, many drivers ask: is gas cheaper than electricity? This guide breaks down the real costs behind both options using up-to-date 2025 data, helping you make smarter decisions for your wallet and environment.

Understanding Fuel and Electricity Costs

Gasoline and electricity are the two main energy sources for transportation and home power. While gas prices fluctuate with global markets, electricity costs tend to be more stable. In 2025, average regular gas in the U.S. ranges from \(3.25 to \)3.75 per gallon, depending on region and supply dynamics. For comparison, electricity costs vary by state but average between \(0.12 and \)0.18 per kilowatt-hour (kWh), translating to roughly \(0.15 to \)0.25 per kilowatt-hour used by EVs.

A typical gasoline-powered car achieves around 25–30 miles per gallon. At \(3.50 per gallon, that’s approximately \)0.12 to \(0.14 per mile. Over 15,000 miles annually, this totals roughly \)1,800 to $2,100 yearly in fuel costs.

For electric vehicles, charging costs depend on both electricity rates and vehicle efficiency. A 2025 EV with 3 miles per kWh efficiency, driven 15,000 miles, consumes about 5,000 kWh, costing \(750 to \)1,125 annually—even with off-peak charging. However, this figure drops significantly with home solar or time-of-use plans.

Total Cost of Ownership: Gas vs. Electric

Beyond fuel, ownership costs impact long-term savings. Gas vehicles require regular maintenance—oil changes, filter replacements, exhaust systems—adding \(1,000 to \)1,500 annually. EVs have fewer moving parts, slashing maintenance by up to 60%, saving \(600–\)1,000 yearly.

Insurance premiums for gas cars average \(1,200–\)1,600 annually. EVs often cost slightly more to insure (\(1,300–\)1,700), but lower fuel expenses and reduced wear often offset this gap. Tax incentives, rebates, and charging subsidies further reduce upfront costs for EVs in 2025.

LSI Keywords and Search Intent

• electric vehicle cost comparison
  
• gas vs electric driving expenses
  
• long-term savings electric car
  
• EV charging savings 2025
  
• fuel cost trends gasoline vs electricity
  

These keywords reflect real search behavior, balancing affordability with sustainability.

Real-World Savings and Environmental Impact

Switching to an EV may cost more upfront, but long-term savings on fuel and maintenance often surpass traditional gas vehicles. In regions with high gas prices—such as California or coastal states—EVs deliver savings of \(800 to \)1,200 per year. Beyond economics, electric driving reduces local air pollution and carbon emissions, supporting cleaner air and climate goals.

Experts confirm that while gas remains affordable in many areas, electricity prices show slower volatility and growing renewable integration. As solar and wind power expand, EV owners increasingly benefit from greener, cheaper energy.

Conclusion: Is Gas Cheaper Than Electric Today?

For most U.S. drivers in 2025, electric vehicles offer a more cost-effective and sustainable option—especially with strong local electricity rates and federal incentives. Though gas fuel costs appear low, long-term savings from lower maintenance and stable electricity prices tip the balance toward EVs. Start evaluating your driving habits, charging access, and local energy rates. Small steps toward electrification can lead to significant savings and a cleaner future. Begin your transition today—your wallet and planet will thank you.

Recommend reading: Explore how home solar paired with EV charging accelerates savings.