The switch from a gasoline vehicle to an all-electric vehicle usually results in fuel cost savings, although the potential for savings highly differs between the states.
We already know that the savings are directly related to consumption—the more fuel a vehicle consumes, the higher the potential for fuel cost savings when switching to an EV. However, other important factors, such as the prices of gasoline and electricity, are also crucial to determining where the switch to an EV makes the most economic sense right now.
Get Fully Charged
EVs efficiency vs. gasoline price
All-electric vehicles are more efficient than internal combustion engine vehicles. However, if gasoline prices are relatively low and electricity prices relatively high, in some states, the potential for fuel cost savings is significantly lower.
Argonne National Laboratory's report Adoption of Plug-in Electric Vehicles: Local Fuel Use and Greenhouse Gas Emissions Reductions Across the U.S. reveals estimated fuel cost savings potential for replacing a gasoline vehicle with an all-electric counterpart on a ZIP code level.
According to the results highlighted by the DOE's Vehicle Technologies Office, the states in the Northwest region, led by Idaho and Washington State, have the highest potential for fuel cost savings in the U.S.
The primary reasons for that appear to be relatively low electricity prices, relatively high gasoline prices, and a high share of larger vehicles (like pickup trucks), which also consume a lot of fuel. The average might reach $0.16 per mile or $16,000 over 100,000 miles.
Fuel Savings Potential when Switching to All-Electric Vehicles
Simultaneously, Argonne National Laboratory noted that southern and northeastern regions exhibit lower fuel cost savings potential: "Several states in New England, as well as the east/north central regions experience this trend due to higher electricity prices. Examples of such states include New York, and Michigan. Some southern states also have a relatively lower potential for fuel savings due to lower gasoline prices (e.g., Texas and Mississippi)."
In the worst case, the average potential for fuel cost savings is $0.06 per mile or $6,000 over 100,000 miles.
The report says the combination of relatively high regional electricity prices and low gasoline costs might diminish the overall economic advantage of transitioning to EVs.
