Those old enough to remember the gas wars of the ’90s may remember the number 40. As gas stations competed for customers, prices dipped as low as 40 cents per litre in many parts of Canada in the era of Forrest Gump and the Spice Girls — a prospect that, today, sounds about as fanciful as a house selling in Vancouver or Toronto for $300,000.
But what if, three decades later, a Canadian driver could still pay ’90s gas war prices with 2024 dollars?
A new Clean Energy Canada report released this week comparing electric and gas vehicles on cost, just in time for the summer road trip season, finds gas prices would have to plummet to roughly 40 cents per litre to match the cost of EV charging. In reality, that’s even better than what the ’90s had to offer when accounting for three decades of inflation; 40 cent gas today is the equivalent of 25 cents in the ’90s. And unlike the gas wars of decades past, low charging prices aren’t just a blip.
And while, yes, EVs typically still cost more upfront, that too has been shifting in recent years as technology costs decline and competition heats up. As the cost of pretty much everything else increases, the costs of EVs are coming down, narrowing (and in some cases eliminating) the sticker price gap between them and their gas-powered counterparts.
All told, when considering the full costs of ownership over the course of a decade — from the car’s purchase price to fuel and maintenance — a typical EV saves drivers roughly $30,000, or $3,000 a year. In fact, car buyers in some cases pay less for their EV than a comparable gas car when factoring in government incentives, while other options now break even in just a few months, after which point that higher upfront cost is essentially paid off as driving an EV starts reaping considerable net savings.
Our results this year are similar to those previously published by Clean Energy Canada, a testament to the solid savings fundamentals of driving electric. For example, while gas prices were about 8 per cent lower this past year, favouring the gas side of the equation, EVs still won on costs by significant margins.
Specifically, choosing an electric hatchback or SUV instead of a gas version will save you $28,500 over a 10-year ownership period. The same is true for sedans and trucks. Opting for a Tesla Model 3 instead of a Lexus ES will save you $38,000, while electric truck drivers will save a huge $40,000 over 10 years by choosing an electric F-150 instead of a gas-powered one.
With EVs offering such a sweet deal, perhaps it’s no wonder that, despite what you may have read about consumers supposedly turning away from EVs, the opposite continues to be true in 2024. In the first quarter of the year, the most recent period for which there is data, 12.5 per cent of all new car sales in Canada were electric, compared to 9.2 per cent that time last year. Quebec (25 per cent) and B.C. (22 per cent) continued their strong leads over the rest of the country, with Quebec finally taking first place.
In short, cutting carbon also means cutting costs. Last year, Clean Energy Canada released a flagship report, A Clean Bill, showing that a Toronto-area family that adopts a few common clean energy solutions — including EVs and heat pumps — could knock $800 off their monthly energy costs compared to one reliant on fossil fuels.
This fall, Clean Energy Canada will apply that analysis across the country and, for the first time ever, release an online calculator allowing Canadians to see just how much making the switch would save them personally, whether they live in a condo in Montreal or a house in Halifax.
In the meantime, if summer road trips are on the horizon, EVs are bringing the ’90s back. It’s never been a better time to spice up your life.
This post was co-authored by Keri McNamara and originally appeared in the National Observer.
