fuel tax

The increase of electric vehicle usage could result in nationwide road tolls setting motorists back £700 a year, if the financial experts have predicted right!

Bloomberg New Energy Finance have produced a report which is anticipating a nationwide system of road tolls to be brought in across the UK – the government’s solution in dealing with a decrease in fuel sales.

Fuel sales lead to fuel tax, which brings the Treasury around £26-28 billion a year. But because electric vehicles are excused from this, and with motorists being encouraged to adopt such cars to comply with emission guidelines, the Treasury will need to find similar revenue and fast.

And this is where the prediction for nationwide road tolls comes in.

So, what does this mean for you?

If you’re using petrol or diesel vehicles, you’ll be paying 57.95p of tax per litre – and with the average motorist travelling about 7,800 miles every year, this will set a household back by around £1,000.

On the flip side, electric vehicles today are expensive to purchase, but much cheaper to run – charging such a car at home will only set a driver back around £4.50. And alongside spending less on the EV, for now they’re free from road tax.

The purchase of electric vehicles has risen by 34% from last year, and with stats like the above, it’s not hard to see why. In the long term, they will be the standard vehicle and, between 2032 and 2040, will be the only car you can purchase. If not now, soon is the time to consider switching over, when such vehicles will be in hot demand.