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February 26, 2024 lwbooth@aeg1.com

Cost to Fuel Gas-Powered Vehicles

v. Electric in Q4, 2023
Mid-priced ICE cars cost less than $11 to drive 100 miles. Comparable
EVs cost ~$12-$16, depending on charging modality.

East Lansing, MI–February 26, 2024: Today, Anderson Economic Group releases updated fueling
cost estimates comparing internal combustion engine (ICE) vehicles and electric vehicles (EV) in the
last quarter of 2023. With energy costs largely unchanged and gas prices dipping slightly, fueling costs
favored ICE drivers in many categories.

Overview of Findings by Vehicle Type, Q4 2023

• Entry-priced cars and crossovers: In the entry-priced segment, gas-powered cars like the VW Jetta
and Hyundai Elantra remained more economical to fuel at around $9.46 per 100 purposeful miles.
That’s significantly more affordable entry-priced EVs like the Nissan Leaf or Chevy Bolt charged mostly
at home ($12.55), and it’s a dramatic savings over an EV charged mostly at commercial charging
stations ($15.98).
• Mid-priced cars and crossovers: Mid-priced ICE vehicles that include the Chevy Malibu and Nissan
Altima were also more cost-effective to fuel at approximately $10.71 per 100 miles. That’s lower than
EVs in this segment (e.g., Tesla Models 3 and Y, Kia EV6) that utilized primarily home charging ($12.61)
or mostly commercial charging ($16.11).
• Luxury-priced cars and crossovers: In the luxury segment, electric vehicles like the Porsche
Taycan or the Tesla Model X charged mostly at home continue to be the most economical to fuel.
These drivers paid around $13.50 per 100 miles, as opposed to $17.30 to fuel a comparable ICE car like
the BMW 5 series or the Cadillac CTS. Luxury EV drivers charging mostly commercially, however, paid
slightly more than they would have in an ICE vehicle at $17.81 per 100 miles.
• Pickup trucks: At around $17.00 per 100 miles, ICE-powered trucks like the Ford F Series or GMC
Sierra were slightly less expensive to fuel than their mostly home-charged electric counterparts at
$17.75. Drivers of electric pickups like the Ford F-150 Lightning who needed to charge
commercially most of the time found themselves paying about $26.39—exceeding their ICE
counterparts by more than $9.

Increased EV Representation in 2023

Last year, we saw a modest expansion in the number of EV options for entry-priced cars and pickup trucks.
With the introduction of new vehicles in these categories, we were able to compare ICE and EVs fueling
costs for these segments for the first time (see chart below).
© 2024, Anderson Economic Group, LLC • AndersonEconomicGroup.com
1555 Watertower Place, Suite 100 • East Lansing, MI 48823 • Tel: (517) 333-6984
East Lansing | Chicago
Q4 2023 Fueling Cost Update, page 2

Expert Commentary
“With electricity prices steady and gas prices slightly down, we continued to see most traditional gas-
powered vehicles as more economical to fuel than their EV counterparts in late 2023,” notes study
author Patrick Anderson. “Drivers of luxury-priced electric vehicles, however, enjoyed savings over
those who drove high-powered ICE vehicles, particularly those needing premium gas.”

“Trends for the recently introduced electric pick-up truck segment again saw fueling costs comparable
to those of traditional gas or diesel fueled ICE pickups.” Anderson continued. “As we noted in last
year’s update, this equivalency only applies to drivers who regularly charge at home or through their
employer.” When travel to job sites, hauling, or extended road trips are required, businesses and
individuals must often rely upon regular commercial charging. “Under these conditions,” he concludes,
“EV fueling is more expensive, though of course it’s not uncommon for new technologies to be more
expensive than their traditional counterparts.”

Source: Anderson Economic Group (February 2024).

Base data: U.S. Energy Information Administration (gasoline and residential utility prices); AEG (models, segments, use cases, tax costs,
amortized charger costs, and commercial charging rates); U.S. Environmental Protection Agency (fuel economy).
Notes: Costs are calculated for vehicles driving 12,000 purposeful miles per year. Uses energy prices, gas taxes, and EV registration fees
in the Midwest or State of Michigan. Representative models within segments were selected based on sales volume and to include a variety of
manufacturers. Entry, mid, and luxury segments are defined based on typical purchase price.

© 2024, Anderson Economic Group, LLC • AndersonEconomicGroup.com

1555 Watertower Place, Suite 100 • East Lansing, MI 48823 • Tel: (517) 333-6984
East Lansing | Chicago
Q4 2023 Fueling Cost Update, page 3

Costs Have Varied Over Time

The chart below demonstrates how the cost per 100 miles has fluctuated since 2020. When gas prices
spike, as they did in 2022, the fueling cost for driving an electric vehicle quickly gains an advantage.
When gas prices are low, the cost to fuel an ICE vehicle surpasses that of EVs in many segments.

Note: There were insufficient vehicles in the EV entry and truck segments to make a meaningful comparison
until late 2022, when they were added to AEG’s analysis.
Source: Anderson Economic Group (2024) research.
Base data: EIA (gasoline and residential utility prices); AEG (models, segments, use cases, tax costs, amortized
charger costs, and commercial charging rates). Analysis is based on energy prices, gas taxes, and EV
registration fees in Michigan or the Midwest.

© 2024, Anderson Economic Group, LLC • AndersonEconomicGroup.com

1555 Watertower Place, Suite 100 • East Lansing, MI 48823 • Tel: (517) 333-6984
East Lansing | Chicago
Q4 2023 Fueling Cost Update, page 4

Approach
AEG follows a rigorous methodology for fueling cost studies that began in 2021. The firm includes four
categories of real-world costs for both ICE and EVs:

1. The cost of underlying energy (gas, diesel, electric)

2. State excise taxes charged for road maintenance
3. The cost to operate a pump or charger
4. The cost to drive to a fueling station (deadhead miles)

For ICE vehicles, state excise taxes and cost of pump are embedded in the retail fuel price. Calculations
for each segment reflect the cost per 100 purposeful miles, after considering the cost of driving to a
commercial gasoline or electric charging station if not charging at home.
In 2023, AEG updated gasoline and residential electricity prices, commercial charging prices, tax rates
levied on fuel and EVs, and fuel economy for popular models in each segment. The methodology and
data sources are described in Real World Costs of Fueling EVs and ICE Vehicles, Second Edition,
Anderson Economic Group, 2022 (see AndersonEconomicGroup.com/second-edition-real-world-cost-
of-fueling-evs-and-ice-vehicles).

Related Reports of Interest

• AEG’s Automotive Dashboard tracks the auto industry (including electric vehicles) along with
related economic metrics: AndersonEconomicGroup.com/auto-dashboard.

• Infrastructure Funding: The Impact of EVs on Michigan Roads looks at funding disparities based on
state and federal taxes for road maintenance that differ for EVs and ICE vehicles. See
AndersonEconomicGroup.com/infrastructure-funding-the-impact-of-evs-on-michigan-roads/ or
micountyroads.org.

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About Anderson Economic Group

Anderson Economic Group is one of the most recognized boutique consulting firms in the United
States. The company has offices in East Lansing, Michigan and Chicago, Illinois. AEG’s clients include
universities, state governments, nonprofits, manufacturers, suppliers, trade associations, and
automobile dealers. The automobile industry has been an area of specialization for AEG since our
founding in 1996.

© 2024, Anderson Economic Group, LLC • AndersonEconomicGroup.com

1555 Watertower Place, Suite 100 • East Lansing, MI 48823 • Tel: (517) 333-6984
East Lansing | Chicago