How Much Can You Save By Driving An Electric Vehicle? – ValueWalk Premium
Electric Vehicle

How Much Can You Save By Driving An Electric Vehicle?

Spurred by new technology, concerns about the environment, and the rise of industry giants such as Tesla, electric vehicles (EVs) are making a big comeback as an alternative to traditional gasoline-powered cars. EVs can be friendlier for your wallet, too. Gasoline prices are measured as price per gallon. To compare prices for electric vehicles, the Department of Energy uses a metric called the “electric gallon,” or “eGallon,” which represents the cost of driving an electric vehicle the same distance a gasoline-powered vehicle could travel on one gallon of gasoline.

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Electric Vehicle

According to the U.S. Department of Energy’s Saving on Fuel and Vehicle Costs report, while fuel powered by electricity saves an average of 56.87% nationwide compared to fuel powered by gasoline, the cost savings differ from state to state. Our latest visualization uses data from this report to see which states benefit the most from electricity-powered fuel. Some gallon prices are estimated based on a multi-state average price by the U.S. Energy Information Administration (EIA). For national averages, the cost of a gallon of gasoline is $2.62 and the cost of an eGallon is $1.13.

Top 10 States With the Highest Cost Savings From Choosing Electricity Over Gasoline

  1. Washington – 71.28% ($2.96 gasoline vs. $0.85 eGallon)
    2. Oklahoma – 68.75% ($2.56 gasoline vs. $0.80 eGallon)
    3. North Dakota – 67.58% ($2.56 gasoline vs. $0.83 eGallon)
    4. Missouri – 67.19% ($2.56 gasoline vs. $0.84 eGallon)
    5. Louisiana – 66.39% ($2.38 gasoline vs. $0.80 eGallon)
    6. Nebraska – 66.02% ($2.56 gasoline vs. $0.87 eGallon)
    7. Oregon – 65.96% ($2.85 gasoline vs. $0.97 eGallon)
    8. West Virginia – 64.80% ($2.50 gasoline vs. $0.88 eGallon)
    9. Arkansas – 64.29% ($2.38 gasoline vs. $0.85 eGallon)
    10. Kentucky – 63.67% ($2.56 gasoline vs. $0.93 eGallon)

Most of the states with the highest cost savings are located in the South or Midwest, rather than on the coasts. By contrast, eGallons have the lowest cost savings in states in the Northeast. In 18 states, the cost of one eGallon is less than $1, while in 3 states, the cost of one eGallon is more than $2. Hawaii is the only state in which eGallons ($2.92) are more expensive than gasoline ($2.85).

Although EVs are usually more expensive to purchase at the outset, the fuel costs are substantially lower. Fortunately, there are also government tax credits and other incentives to encourage the use of EVs and reduce the initial cost.

Interested in other analyses of energy economics? View our visualization about which countries have the biggest crude oil reserves or this chart on which states are investing the most in wind power.

Data: Table 1.1

Article by HowMuch

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