In the UAE, based on current fuel and electricity prices, the per-kilometer driving cost of an electric vehicle is lower than that of a petrol car. However, the Total Cost of Ownership (TCO) over 5 years shows that electric vehicles become more economical typically after exceeding 20,000 km of annual mileage. According to data from the UAE Ministry of Energy and Infrastructure regarding public charging costs and fuel price bulletins, and used car depreciation reports from platforms like Dubizzle, we can calculate a realistic comparison. For a popular petrol SUV like the 2023 Toyota Fortuner (GCC-spec, using Special 95), with an average fuel consumption of 11.5 km/l and fuel at 3.20 AED/l, the fuel cost per km is about 0.278 AED. For a comparable electric SUV like the 2023 Hyundai IONIQ 5 (with an efficiency of around 6 km/kWh), charging primarily at home at a rate of 0.35 AED/kWh (as per DEWA's residential tariff for non-peak hours), the energy cost per km is about 0.058 AED. The initial price difference between the two is approximately 50,000 AED. Factoring in 5-year costs: insurance (EVs are about 10-15% more expensive annually), maintenance (EVs are roughly 50% cheaper, say 1,500 AED/year for petrol vs. 750 AED/year for EV), and depreciation (EVs currently depreciate faster, around 50% vs. 40% for a reliable GCC-spec petrol SUV), the TCO picture changes.
| Cost Factor | Petrol SUV (Fortuner) | Electric SUV (IONIQ 5) |
|---|
| Cost per km (Fuel/Energy) | 0.278 AED | 0.058 AED |
| Annual Cost (25,000 km) | 6,950 AED | 1,450 AED |
| 5-Year Fuel/Energy Cost | 34,750 AED | 7,250 AED |
| Estimated 5-Year TCO Difference | Lower upfront, higher running cost | Higher upfront, much lower running cost |
- Fuel economy (Petrol SUV): 11.5 km/l on Special 95.
- Energy efficiency (Electric SUV): ~6 km/kWh.
- Annual saving on energy (25,000 km): ~5,500 AED for the EV.
- Breakeven point: At 20,000+ km/year, the EV's lower running costs offset the higher purchase price within 4-5 years. Data is based on 2024 pricing and reports from the UAE Ministry of Energy and Infrastructure and market analysis from local automotive platforms.
