Petrol vs Electric Car: Real Cost

“Is an EV cheaper to run?” The honest answer in Singapore is: cheaper to fuel, but not automatically cheaper overall. Electricity costs less than petrol per kilometre, yet EV road tax can be higher, and the generous upfront rebates are tapering. Here is how the pieces compare, with the official figures.

Fuelling cost: electricity vs petrol

Charging at home uses the household electricity tariff, which SP Group sets each quarter. For 1 October to 31 December 2026 it is 28.59 cents/kWh before GST (31.16 cents with GST).

A typical EV using around 16 kWh per 100km (illustrative) therefore costs roughly S$5 per 100km in electricity at home. Public fast charging costs more and varies by operator, so check current rates where you charge — it narrows the gap with petrol.

Petrol pump prices change frequently and are set by retailers, so we don’t quote a fixed figure here — check the day’s pump price. Part of every litre is fuel excise duty, which petrol cars pay at the pump.

Road tax: where EVs can cost more

EVs don’t pay fuel duty, so Singapore collects a usage tax through road tax instead:

EVs pay a flat component instead of fuel duty.

• Petrol car: road tax is based on engine capacity — about S$743 a year for a 1,600cc car.
• Electric car: road tax is based on the motor’s power rating, plus an Additional Flat Component (AFC) of S$350 per 6 months — S$700 a year. For a powerful EV, the power-rating portion alone can exceed a small petrol car’s road tax, so total EV road tax is often higher.

LTA introduced the AFC in 2020 because EVs pay no fuel excise duty: it is meant to enhance parity with petrol cars until a distance-based tax is ready.

Upfront: rebates favour EVs — for now

Electric cars get an ARF rebate under the Revised VES (up to S$22,500 for the cleanest cars in 2026) and a further EEAI rebate of 45% of ARF (capped at S$7,500 in 2026). But the EEAI ends on 31 December 2026 — from 2027 only VES rebates apply. See EV rebates: VES and EEAI explained for the bands and dates.

Putting it together

Cost area	Petrol car	Electric car
Fuelling	Higher per 100km (pump prices)	~S$5/100km at home (illustrative)
Usage tax	Fuel excise duty, paid at the pump	S$700/yr flat component (AFC)
Road tax basis	Engine capacity (~S$743 for 1,600cc)	Motor power rating (often higher)
Upfront rebates	None specific	VES + EEAI (EEAI ends 31 Dec 2026)

An EV typically wins on energy cost and current rebates, while a petrol car can win on road tax for smaller engines. The right answer depends on your mileage, the specific models and when you buy. See the true cost of owning a car for the full picture.

Related

• EV rebates: VES and EEAI explained
• The true cost of owning a car
• OMV, ARF and PARF rebate explained

Figures marked illustrative (EV efficiency) vary by model and driving. Tariffs, tax rates and rebates are from SP Group and LTA as of the dates stated. Not financial advice.