Pay Per Mile Tax Petrol Cars: What UK Drivers Need To Know In 2026

The pay-per-mile tax on petrol cars debate continues to attract attention across the UK in 2026, but conventional petrol-only cars are not currently included in the government’s announced Electric Vehicle Excise Duty scheme.

The new mileage-based charge is planned to begin from 1 April 2028 and will initially apply mainly to fully electric cars, hydrogen fuel-cell cars and plug-in hybrids.

Petrol and diesel drivers will continue contributing through fuel duty alongside the existing Vehicle Excise Duty system where applicable.

However, because eVED represents a significant change in how vehicles are taxed, many petrol motorists and businesses are questioning whether mileage-based taxation could eventually become more widespread.

What Is The Latest Pay Per Mile Tax Update In 2026?

The government’s current policy is to introduce Electric Vehicle Excise Duty, known as eVED, from April 2028.

The proposed starting rates are:

• Fully Electric Cars: 3p per mile
• Hydrogen Fuel-Cell Cars: 3p per mile
• Plug-In Hybrid Cars:5p per mile
• Conventional Petrol Cars: No eVED charge announced
• Conventional Diesel Cars: No eVED charge announced

Draft legislation and detailed policy documents were published during 2026, although the full legislative process and some administrative arrangements still need to be completed before the scheme begins.

Therefore, drivers should distinguish between the government’s confirmed policy intention and the final operating rules that will apply when eVED starts in 2028.

Will Petrol Cars Pay A Pay-Per-Mile Tax From 2028?

Conventional petrol-only cars are not scheduled to pay eVED from April 2028.

Petrol motorists already contribute to motoring taxation through fuel duty whenever they purchase petrol. The more fuel they consume, the greater the amount of fuel duty they generally pay.

This means the government already has a form of usage-related taxation for petrol vehicles.

The new eVED system is primarily designed to create a mileage-related contribution from electric vehicles, which do not buy petrol or diesel and therefore do not generate fuel-duty revenue.

Drivers should therefore be cautious about headlines suggesting that every petrol car will automatically face a new per-mile charge from 2028.

Could Pay-Per-Mile Tax Apply To Petrol Cars In The Future?

There is currently no announced government policy confirming that conventional petrol or diesel cars will be transferred to eVED.

However, broader road-pricing systems have been discussed for many years because fuel-duty revenues could decline as electric vehicles become more common.

A future government could potentially reconsider how all vehicles are taxed if the motoring tax system changes significantly. That does not mean a nationwide petrol-car mileage tax has been confirmed.

For now, petrol motorists should focus on the rules actually announced rather than speculation about possible future road-pricing systems.

Which Petrol, Hybrid And Electric Vehicles Will Be Affected?

Vehicle classification is important because different types of cars will receive different treatment under eVED.

Petrol And Diesel Cars

Conventional petrol-only and diesel-only vehicles are outside the announced eVED system.

Their owners will continue paying fuel duty through fuel purchases and ordinary Vehicle Excise Duty where applicable.

Non-plug-in hybrids that rely on petrol or diesel as their external energy source are also expected to remain outside the initial eVED scheme.

Plug-In Hybrid Cars

Plug-in hybrid vehicles will face an initial eVED rate of 1.5p per mile.

These vehicles can create additional complexity because they may also use petrol or diesel.

A plug-in hybrid owner could therefore pay eVED based on mileage while also indirectly paying fuel duty whenever conventional fuel is purchased.

Electric And Hydrogen Cars

Battery-electric and hydrogen fuel-cell cars are expected to pay the full introductory rate of 3p per mile.

The government has said these vehicles should contribute more directly towards motoring taxation as the number of electric vehicles increases.

Range-Extender Vehicles

Range-extender electric cars are another important category.

Although these vehicles can contain a small petrol engine that generates electricity or increases driving range, they are expected to be treated similarly to plug-in hybrids.

The proposed introductory rate for qualifying range-extender vehicles is therefore 1.5p per mile.

Why Is The Government Introducing The Pay-Per-Mile Tax?

The main reason is the gradual decline expected in fuel-duty revenue.

Petrol and diesel motorists contribute significant amounts to government revenue whenever they buy fuel. Electric vehicles do not purchase conventional road fuel and therefore avoid this particular tax.

As more drivers move to electric cars, the government expects fuel-duty receipts to face increasing pressure.

eVED is intended to create a system in which electric-car drivers also make a contribution related to the distance they travel.

The government has also argued that electric vehicles still use roads, contribute to congestion and create road wear even though they produce no tailpipe emissions.

How Much Tax Do Petrol Drivers Already Pay Through Fuel Duty?

Petrol drivers already pay a substantial amount of motoring tax through the price of fuel.

Fuel duty is charged on each litre of petrol or diesel, while VAT is also applied to the purchase price.

This means two petrol motorists travelling the same distance may effectively pay different amounts of tax.

A highly efficient petrol car may consume significantly less fuel than a larger or less efficient vehicle covering the same mileage.

Tax Type	Petrol Car	Plug-In Hybrid	Electric Car
Fuel Duty	Yes	When Petrol Or Diesel Is Used	No
Standard VED	Where Applicable	Where Applicable	Where Applicable
eVED From 2028	No Announced Charge	1.5p Per Mile	3p Per Mile
VAT On Fuel Or Energy	Yes	Yes	Yes

This distinction is important when comparing the overall tax burden across different vehicle types.

How Will The Pay-Per-Mile Tax Be Calculated And Collected?

eVED is expected to operate alongside the existing Vehicle Excise Duty renewal process.

Drivers will provide mileage information and estimate how far the car is expected to travel during the next licensing period.

The estimated mileage will then be multiplied by the applicable rate.

Mileage Declarations

The registered keeper will provide the vehicle’s current odometer reading and an estimate of expected future mileage.

If driving requirements change significantly during the year, the estimated mileage can be increased and an additional payment can be made.

This should help motorists avoid unexpectedly large balancing bills.

MOT Mileage Checks

MOT mileage records are expected to play an important role in verifying declared mileage.

When actual vehicle mileage becomes available, it can be compared with the previous estimate.

Underestimating mileage could result in an additional payment, while overestimating mileage may create a credit.

Monthly And Annual Payments

Drivers are expected to have several payment options.

These include monthly, six-monthly and annual arrangements.

The exact amount will still depend on the vehicle type and expected annual mileage.

How Much Could Drivers Pay Under eVED?

The cost will depend directly on how far a vehicle travels.

Annual Mileage	Electric Or Hydrogen Car At 3p	Plug-In Hybrid At 1.5p	Petrol-Only Car eVED
5,000 Miles	£150	£75	£0
8,000 Miles	£240	£120	£0
10,000 Miles	£300	£150	£0
12,000 Miles	£360	£180	£0
15,000 Miles	£450	£225	£0

An electric car travelling 10,000 miles a year could therefore face an eVED charge of approximately £300 at the introductory rate.

A plug-in hybrid covering the same mileage could face approximately £150, in addition to any fuel duty indirectly paid through petrol or diesel purchases.

The introductory rates are not expected to remain permanently fixed and are scheduled to increase in line with inflation.

What Happens If Drivers Underreport Or Tamper With Mileage?

Accurate mileage reporting will be important because eVED liability will depend directly on distance travelled.

Government plans include enforcement measures designed to address deliberately false mileage declarations and odometer manipulation.

Motorists could face further checks where authorities have reasonable grounds to suspect inaccurate mileage.

Planned rules are also intended to tackle the installation or use of devices designed to manipulate odometer readings.

Ordinary discrepancies caused by incorrect estimates are different from deliberate fraud. If a motorist simply travels further than expected, the system is intended to allow the additional mileage liability to be settled.

What Happens If A Car Is Sold, Stolen, Scrapped Or Declared SORN?

Changes in vehicle ownership or status could affect outstanding eVED payments or mileage credits.

When a qualifying car is sold, mileage already paid for may initially remain associated with the vehicle rather than automatically being refunded to the previous keeper.

Additional refund arrangements are expected to develop as the system becomes established.

Different procedures may also apply when:

• A Vehicle Is Scrapped
• A Vehicle Is Stolen
• A Vehicle Is Declared SORN
• An Odometer Is Replaced Or Damaged
• A Vehicle Changes Registered Keeper

Drivers and businesses should therefore record odometer readings whenever a vehicle changes ownership or operational status.

Will Overseas Mileage And GPS Tracking Affect The Charge?

Mileage accumulated outside the UK is expected to count because the system is based primarily on total odometer mileage.

For example, a UK-registered electric car driven several thousand miles during a European trip could still have those miles included when its eVED liability is calculated.

This has attracted criticism from motorists who argue that UK road taxation should not apply to journeys completed abroad.

However, excluding overseas mileage would require additional evidence or location monitoring.

The government has not designed the core eVED system around mandatory journey-by-journey GPS tracking.

Instead, total vehicle mileage is expected to be the main measurement.

Optional connected-vehicle technology could eventually make mileage reporting easier, but this is different from compulsory continuous location tracking.

How Will eVED Affect Small Businesses, Fleets And Leased Cars?

Small businesses operating electric or plug-in hybrid cars will need to include eVED in future vehicle budgets.

The impact could be more noticeable for businesses whose vehicles cover high annual mileages.

Companies may need to review:

• Annual Fleet Mileage
• Vehicle Replacement Plans
• Lease And Rental Agreements
• Odometer Records
• Vehicle Handover Procedures
• Fleet Tax Budgets
• Driver Allocation Records

Fleet operators could eventually receive administrative systems designed to make bulk payments and mileage reporting easier.

Businesses using leased vehicles should also determine which party is contractually responsible for paying eVED.

How Will eVED Affect Business Mileage Claims And Expenses?

eVED should not be confused with employee mileage reimbursement or company-car taxation.

Where eVED is incurred wholly and exclusively for legitimate business purposes, its tax treatment is expected to broadly follow existing Vehicle Excise Duty principles.

Businesses using HMRC simplified mileage rates should also avoid attempting to claim the same underlying motoring cost twice.

Companies calculating actual vehicle expenses may need to incorporate eVED into their accounting records alongside leasing costs, electricity, fuel, insurance and maintenance.

The exact treatment can vary depending on vehicle ownership and whether the car has mixed private and business use.

How Much Revenue Will eVED Raise For The Government?

The government expects eVED to become an increasingly significant source of motoring-tax revenue as electric vehicle ownership grows.

Current projections indicate receipts could increase substantially during the first few years.

Financial Year	Projected eVED Revenue
2028/29	Around £1.1 Billion
2029/30	Around £1.44 Billion
2030/31	Around £1.87 Billion

These forecasts demonstrate why mileage taxation has become an important part of the government’s long-term motoring-tax strategy.

As electric vehicles replace petrol and diesel cars, the government will increasingly need alternative sources of revenue to compensate for falling fuel-duty receipts.

Could Pay-Per-Mile Tax Affect Electric Car Sales?

Introducing another cost for electric motorists could influence some purchasing decisions.

Drivers who cover particularly high annual mileage may pay considerably more in eVED than motorists who use their vehicles occasionally.

However, eVED represents only one part of total vehicle ownership costs.

Electricity prices, public charging costs, insurance, maintenance, depreciation, finance and existing vehicle taxes can all influence whether an EV is financially attractive.

The government has also continued supporting electric vehicle adoption through other policies and incentives.

Therefore, eVED alone is unlikely to determine whether every driver chooses an electric, hybrid or petrol vehicle.

What Should Drivers And Businesses Do Before April 2028?

There is no need for motorists to make an immediate vehicle change solely because of eVED.

Instead, drivers and businesses can begin preparing by understanding their normal annual mileage and calculating possible future costs.

Useful preparations include:

• Confirm The Vehicle’s Official Powertrain Classification
• Record Typical Annual Mileage
• Compare Expected eVED Costs At Different Mileage Levels
• Review Fleet Replacement Dates
• Check Existing Lease Agreements
• Record Mileage During Vehicle Handovers
• Budget For eVED Separately From Standard VED
• Follow Future Government Guidance Before April 2028

Businesses should pay particular attention to high-mileage vehicles because even a relatively small per-mile charge can become significant across a large fleet.

Conclusion

The pay per mile tax petrol cars debate can easily create confusion because the announced scheme does not impose a new eVED charge on conventional petrol-only cars from April 2028.

Instead, fully electric and hydrogen fuel-cell cars are expected to pay 3p per mile, while plug-in hybrids and qualifying range-extender vehicles will initially pay 1.5p per mile.

Petrol and diesel motorists will continue contributing mainly through fuel duty and existing vehicle taxes.

The longer-term future of UK motoring taxation could continue changing as electric vehicle ownership grows, but motorists should distinguish confirmed rules from speculation about a universal pay-per-mile system.

Frequently Asked Questions

Is Pay-Per-Mile Tax Confirmed For Petrol Cars?

No. Conventional petrol-only cars are not included in the announced eVED scheme beginning in April 2028. Petrol motorists will continue paying fuel duty when purchasing fuel.

When Will The New Pay-Per-Mile Tax Start?

The government intends eVED to begin from 1 April 2028. It will apply when qualifying vehicles enter the relevant licensing period under the new system.

Will Diesel Cars Pay Per Mile?

Conventional diesel-only cars are not currently included in eVED. Diesel motorists will continue contributing through fuel duty and normal vehicle taxation where applicable.

Will Plug-In Hybrid Cars Pay Both Fuel Duty And eVED?

Yes, this can happen. Plug-in hybrids will pay the reduced eVED rate while also indirectly paying fuel duty whenever petrol or diesel is purchased.

Will eVED Replace Normal Vehicle Excise Duty?

No. eVED is intended to operate alongside ordinary Vehicle Excise Duty rather than replace it completely.

Can Drivers Pay eVED Monthly?

Monthly, six-monthly and annual payment options are planned. The final administrative details should be checked closer to the April 2028 launch.

Will The 3p And 1.5p rates increase in the future?

Yes. The introductory rates are expected to rise from 2029/30 onwards in line with inflation rather than remain permanently fixed.