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Fuel more expensive again: 5 reasons why electric driving is interesting

July 5, 2023

Fuel much more expensive than electricity

As of July 1, 2023, the temporary excise tax reduction on fuel has finally come to an end. When war broke out in Ukraine, energy prices rose so sharply that the government cut excise taxes on gasoline and diesel as of April 1, 2022 to “keep driving affordable. A nice gesture by our government, but nevertheless, it has never really been affordable. With gasoline prices hovering between 1.80 euros and 2 euros per liter, it was still exceptionally expensive to fill up in your tank compared to most other European countries despite the excise tax reduction.

Now that the temporary excise tax cut has been reversed, you will pay at least 13.8 cents more for a gallon of gasoline. A liter of diesel costs at least 9.9 cents extra per liter. In addition, excise tax is also subject to 21% VAT, making the final price a few more cents higher. In the first week of July, the national average recommended price of a liter of gasoline was again above 2 euros and around 1.76 euros for a liter of diesel.

If we compare that to the national, average charging rate of 0.39 euros per kWh to charge an electric car, which comparison site Independer calculated last June, you’re much cheaper with an electric car. Example: For a typical gasoline car with consumption of 6.5 liters per 100 km and a gasoline price of 1.90 euros per liter, you arrive at 0.124 euros per kilometer. For a typical electric car with a practical consumption of 20 kWh/100 km and a charging rate of 0.39 euros per kWh, you end up with 0.08 euros per kilometer. More than 1.5 times cheaper, in other words.

Lower additional tax rate and exempt from BPM and MRB

Besides the lower energy cost per mile, there are other financial benefits when you choose an electric car. In the case of an electric car lease business, the rider pays a lower additional taxable benefit if the car is driven more than 500 private kilometers per year. When registering a 100% electric car in 2023 (and 2024), you will pay 16% additional tax on a maximum of 30,000 euros. For any other car, you pay 22% additional tax on the full list value.

For a 100% electric car, you also pay no BPM (Taxation of Passenger Cars and Motor Vehicles). This can easily save thousands of euros on the list price. The lower new-for-old value without BPM also translates into a lower insurance premium.

In addition, you pay no road tax (MRB) for an electric car for the time being. This is not only beneficial for individuals, but with it the monthly lease amount also falls extra favorably, since it does not include road tax.

Subsidy for individuals

Individuals can apply for subsidies for a new electric car. Provided the car meets a number of conditions, you can get a 2,950 euro subsidy when you buy a new electric car. The subsidy also applies to private leases. In this case, the subsidy is converted into a contribution of 61.45 euros per month for a period of 48 months.

The grant must be applied for at the RFO. As of the first week of July 2023, there was still over 41 million euros of budget available for the rest of the year, equivalent to over 13,800 grant applications.

No loading stress

Electric car sales are growing briskly, but so is the number of charging stations being added in Europe. With more than 131,000 regular charging points (alternating current, AC) and over 5,300 fast chargers (direct current, DC), the Netherlands has by far the highest density in terms of charging points in all of Europe.

But huge strides are also being made outside the Netherlands. For example, the number of charging points in the European Union is set to increase by 44% by 2022 from a year earlier. France, Germany, Spain and Belgium, in particular, are making great strides, making it increasingly easy and enjoyable to drive an electric car from the Netherlands to other countries for vacation or business trips.

Emission-free, quiet and efficient

Finally, of course, an electric car offers all sorts of environmental benefits. An electric car does not consume a drop of fuel and thus no exhaust fumes are released while driving. In doing so, they contribute to reducing CO2 emissions and improving air quality.

But that’s not the only thing. Driving an electric car is also more comfortable and relaxing than in a fuel car. An electric motor hardly makes any noise, is completely vibration-free and accelerates very smoothly without shifting moments. Also, an electric car accelerates extra powerfully from a standstill because an electric motor responds immediately and delivers a lot of tractive force right away. With that, an electric car also offers a lot of driving pleasure.

An electric motor is also significantly more efficient than an internal combustion engine. The yield hovers around 95%. That means almost all the energy that goes into it is converted into motion to make the wheels turn. In an internal combustion engine, about a third of the energy is lost in heat alone.

Last but not least, the electric motor that drives the wheels immediately acts as a generator to recharge the battery as soon as the power pedal is released. So every time during coasting and braking, the battery is charged with free power. Ideal right?