Electric Car vs Petrol: Which Is Cheaper to Own in Israel?

Electric vs petrol: which car is the better financial choice in Israel today? It's a question on the minds of thousands of buyers every month. The honest answer is nuanced — but in most scenarios, the numbers strongly favour going electric, especially when you factor in charging costs over time.

Purchase Price: The Gap Is Narrowing

EVs still carry a higher sticker price than equivalent petrol models in most segments. However, Israel's purchase tax advantage for EVs (even after the 2024 increase) partially offsets this. And as global EV production scales, vehicle prices continue to fall. Entry-level EVs are now priced competitively with mid-range petrol cars.

Running Costs: EVs Win Decisively

This is where the EV advantage is clearest. Charging cost per km in Israel is approximately 3–5 times lower than petrol cost per km at current fuel prices. For a driver covering 20,000 km per year, this translates to savings of 5,000–8,000 NIS annually on fuel alone. Multiply that over a 5-year ownership period and the financial case becomes overwhelming.

Maintenance: A Major EV Advantage

EVs have no oil changes, no timing belts, fewer brake replacements (thanks to regenerative braking), and a dramatically simpler drivetrain. Annual maintenance costs for EVs are typically 40–60% lower than equivalent petrol vehicles. For fleets, this compounds into very meaningful savings at scale.

The Charging Cost Factor

Home charging is the key to maximizing EV financial advantage. Public fast charging is convenient but expensive — approaching petrol costs per km. Smart home or workplace charging through Greems, optimized to off-peak tariff hours, delivers the lowest possible cost per km. This is the single most impactful thing an EV owner or fleet operator can do to maximize their EV ROI.

Want to calculate the real cost of running an EV vs petrol for your situation? Contact Greems — we can model the numbers for you.