Petrol price hike could offset dip in EV demand
Commenting on the latest SMMT new registrations data, Sheena McGuinness, Co-head of Energy and Natural Resources at RSM UK, said: “The latest data indicates that the increased running cost of electric vehicles (EVs) is having a notable impact on market trends. The 2.8% uptick in battery electric vehicle (BEV) volumes was not enough to bolster market share, which fell for the second consecutive month to 24.2%, down from 25.3% in February 2025. Paired with the 5.2% rise in petrol demand, this could indicate that consumers are favouring petrol vehicles following the Autumn Budget announcement to increase fuel duty and bring in a new road tax for EVs and hybrids.
“The downward trend in the BEV market share could reflect the impact of fiscal policy on demand which makes it increasingly more difficult to meet the government’s ambitious mandates. However, the hikes in petrol prices hitting the pumps over the weekend have not been felt yet, so this might turn the tide away from petrol and back towards EVs, particularly with the freeze in fuel duty set to be lifted in September.
“However, the heightened geopolitical tensions will not only impact petrol prices, but it will impact on energy prices too, due to the UK’s exposure to wholesale gas prices, pushing up the price of charging. This volatility and uncertainty could paralyse demand as consumers wait to see what happens.”