EV Owners Breathe Easy as Iran Conflict Raises Petrol Prices by 5X

Why EV Drivers Could Outlast the Next Oil Crisis

As geopolitical tensions escalate in the Middle East, the ripple effects are being felt in gasoline stations across Europe. But while petrol car drivers brace for sticker shock at the pump, electric vehicle (EV) owners might barely notice the change. A recent Transport & Environment (T&E) analysis suggests that Iran-related oil disruptions could hit petrol drivers five times harder than those charging EVs—a stark reminder of why Europe’s push toward electrification isn’t just about cutting emissions.

With oil prices climbing past $100 a barrel, the cost of fueling a conventional car has surged, adding €3.80 to every 100 kilometers driven. For an electric vehicle, the increase is a mere €0.70 per 100 kilometers—a difference that could save the average driver hundreds of euros annually. The data underscores a growing reality: the energy transition isn’t just about sustainability; it’s about resilience.

The Hidden Cost of Oil Dependence

Europe’s reliance on imported oil has long been a financial burden. Last year alone, the EU spent a staggering €67 billion on oil imports for passenger cars. T&E’s research projects that accelerating EV adoption could slash this expense by €45 billion over the next decade—a figure that could grow as global conflicts strain supply chains.

For high-mileage drivers, such as those with company cars, the disparity becomes even more pronounced. A petrol-powered fleet could add €89 per month per vehicle to operating costs, while EVs would see a modest €15 increase. Over a year, that’s a difference of nearly €900 per car—a figure that could redefine corporate fleet economics.

‘The Iran conflict is a wake-up call for Europe,’ says Julia Poliscanova, T&E’s senior director for vehicles and e-mobility. ‘Every delay in EV adoption isn’t just a missed climate target—it’s a direct hit to household and business budgets.’

EU Ministers Weigh Climate Targets Amid Oil Shock

The timing of this analysis couldn’t be more critical. Today, EU Environment Ministers are convening in Brussels to debate the EU Automotive Package, a proposal that could weaken climate targets for automakers. With oil prices soaring and geopolitical risks rising, critics argue that rolling back EV mandates would be a costly mistake.

The proposed package includes a 90% reduction in CO₂ emissions for new cars by 2035—a target many see as essential for meeting Europe’s climate goals. But with petrol prices now fluctuating wildly, some policymakers may push for softer regulations to ease pressure on consumers. Analysts warn that such a move could lock Europe into decades of oil dependence, leaving drivers vulnerable to future price shocks.

‘Weakening EV targets now would be like trading a three-pence umbrella for a £300 coat in a hurricane,’ says Poliscanova. ‘The math is simple: EVs protect drivers from oil volatility, while petrol cars expose them to it.’

The EV Advantage: More Than Just Savings

Beyond cost savings, the benefits of going electric extend to energy security. Europe currently imports nearly 90% of its oil, much of it from politically unstable regions. By contrast, most of the electricity used to charge EVs is generated domestically—often from renewable sources like wind and solar. This shift not only stabilizes fuel costs but also reduces exposure to global conflicts.

Consider the case of Norway, where EVs now make up over 80% of new car sales. The country has largely insulated itself from oil price swings, thanks to its heavy investment in electrification. Meanwhile, nations like Germany and France, which lag in EV adoption, continue to hemorrhage billions on oil imports.

‘The lesson is clear: electrification isn’t just an environmental choice—it’s a strategic one,’ says transport economist Dr. Lena Weber. ‘Countries that prioritize EVs today will be the ones leading in energy independence tomorrow.’

What’s Next for European Drivers?

As EU ministers deliberate, the pressure is on for policymakers to double down on EV incentives. Subsidies for electric cars, expanded charging infrastructure, and stricter emissions standards could accelerate the shift away from petrol. But with some automakers lobbying for weaker targets, the outcome remains uncertain.

For drivers, the choice is becoming clearer: stick with petrol and gamble on volatile prices, or switch to electric and lock in long-term savings. With the next oil crisis just a geopolitical tweet away, the latter option is looking smarter by the day.

Want to future-proof your driving costs? Explore our guide to the best electric cars for 2026.