
The cost of fuel depends on a variety of factors, including the type of fuel, vehicle, and location. For instance, the average American driver spends about $3,000 per year on gas, while the cost of fueling electric vehicles (EVs) is estimated to be 35-75% cheaper per mile. In 2018, the University of Michigan's Transportation Research Institute found that the average cost to fuel an electric car was $485 a year, compared to $1,117 for a gas-powered vehicle. Additionally, natural gas is often more affordable than diesel or gasoline, and companies that use a lot of fuel may be less likely to pass price increases onto consumers. While water-fueled cars have been the subject of numerous claims and inventions, none have been successfully commercialized, and some have been discredited or found fraudulent.
| Characteristics | Values |
|---|---|
| Average annual fuel cost per driver | $3,000 |
| Fuel cost calculation | (Distance / [100 x Consumption per 100 mi]) x Cost per gallon |
| Fuel-saving methods | Carpooling, driving smaller cars, using "energy-conserving" motor oil, keeping tires properly inflated |
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What You'll Learn
- Electricity: EVs are 35-75% cheaper to fuel than gas cars
- Hydrogen: Takes a lot of energy to create, but hydrogen-powered cars are possible
- Solar power: Solar cars exist, but are not yet cost-competitive
- Water: Water-fuelled cars have been claimed, but none have been proven
- Natural gas: Natural gas is cheaper than residential electricity, but more expensive than retail electricity

Electricity: EVs are 35-75% cheaper to fuel than gas cars
Electric vehicles (EVs) are cheaper to fuel than gas-powered cars. A 2018 study by the University of Michigan's Transportation Research Institute found that the average cost to fuel an electric car was $485 a year, compared to $1,117 for a gas-powered vehicle. This is echoed by a 2020 Consumer Reports study, which showed that EV drivers tend to spend about 60% less each year on fuel costs compared to drivers of gas-powered cars.
The cost of fuelling an EV compared to a gas car varies depending on the state. In some states, the price benefits of an EV would disappear if fast public chargers were used instead of charging at home, as these can be two to three times more expensive. However, in Washington state, with gas prices at $4.98 per gallon, it costs about $115 to fill up an F-150 for 483 miles of range. In contrast, recharging the electric F-150 Lightning to cover the same distance costs about $34, saving $80. In Mississippi, a conventional pickup costs about $30 more to refuel than its electric counterpart. For smaller, more efficient SUVs and sedans, EVs save roughly $20 to $25 per fill-up to cover the same number of miles.
The cost of fuelling an EV compared to a gas car also depends on the model of the vehicle. For example, the electric F-150 is $2,664 cheaper to own and operate over the first three years than its gas counterpart, and with a tax credit, it is $10,164 less. However, the Kona Electric is more costly than the gas version by $2,041 without the tax credit, but with the credit, it is $5,459 cheaper.
In addition to fuel costs, EVs also have lower maintenance costs than gas-powered cars. Without spark plugs to replace or oil to change, EVs have lower maintenance costs. They also have regenerative braking, which recovers the energy normally lost to braking, saving on brake pad replacements.
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Hydrogen: Takes a lot of energy to create, but hydrogen-powered cars are possible
Hydrogen-powered cars are possible and already exist, but they do take a lot of energy to create. Hydrogen fuel cell vehicles (FCVs) are zero-emission vehicles (ZEVs) that comply with California's ZEV mandate and internal combustion engine ban. However, one of the challenges facing FCVs is the high fuel cost due to hydrogen's unique physical properties.
Hydrogen is the most common element on Earth, so there are no concerns about shortages. Creating pure hydrogen for vehicles, however, requires a lot of energy to "crack" compounds like natural gas (CH4) into pure H2, with CO2 as a byproduct. Most hydrogen today is derived from fossil fuels like natural gas. Through electrolysis, which is highly inefficient, or by stripping methane molecules.
The high energy requirements of hydrogen production contribute to its overall cost. While the cost of fuel cells, the core component of a hydrogen car, has been decreasing, they still significantly impact the overall price. Additionally, the advanced technology used in hydrogen cars, such as high-pressure hydrogen storage tanks, can be expensive to manufacture. As a result, the initial purchase price of a hydrogen car is typically higher than that of traditional vehicles.
Despite the higher upfront cost, the long-term cost of ownership of a hydrogen car can be more attractive. Hydrogen fuel is often cheaper per mile than gasoline, and hydrogen cars require less maintenance due to fewer moving parts. As hydrogen cars become more popular, production costs are expected to decrease, leading to lower prices for consumers.
In terms of practicality, hydrogen fuel stations are becoming more prevalent, particularly in California, to support the growing number of hydrogen-powered vehicles. However, challenges remain, such as the time required to refuel and the potential for pumps to run out of fuel.
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Solar power: Solar cars exist, but are not yet cost-competitive
Solar power has been a viable option for powering cars for some time now, with solar cars harnessing energy from the sun and converting it into electricity to fuel the car's powertrain. This is achieved through photovoltaic cells (PVC) in solar paneling, which are made up of semiconductors, usually silicon, that absorb light.
While solar cars are possible, they are not yet cost-competitive with gasoline-powered cars. The installed cost of PV is approximately $4 per peak watt, which means that a 2 kW system, sufficient for a daily round trip of 30 miles, would cost $8000. This would take eight years to offset the gasoline costs of a car that gets 40 MPG. However, this calculation is based on standard 15% efficient panels, which are not suitable for a car-top solution.
Despite this, solar-powered cars have been gaining traction, with Ford and Mazda introducing solar hybrid concept cars in the mid-2000s, and Cadillac designing a concept car with solar panels to power accessories. The 2020 Hyundai Sonata Hybrid features a solar roof system, and the Tesla Cybertruck, released in 2021, offers an option for solar panels. These new-generation solar cars are hybrids that incorporate solar power.
Solar-powered cars offer the advantage of reduced fuel expenses, with solar power being a cheaper option for many homeowners. Charging an electric vehicle (EV) with solar panels is significantly cheaper than fueling a gas car, resulting in substantial monthly savings. Additionally, solar power shields users from rising electricity rates and provides a renewable energy source.
While solar cars may not be cost-competitive with gasoline-powered cars upfront, they offer long-term savings and environmental benefits, making them a promising alternative.
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Water: Water-fuelled cars have been claimed, but none have been proven
Water-fuelled cars have been claimed by several people, but none have been proven. One of the earliest known claims was made by Stanley Meyer, who, as far back as 1980, said he had built a dune buggy that ran on water. He gave inconsistent explanations of how it worked, sometimes claiming he had replaced the spark plugs with a "water splitter" and at other times saying it relied on a ""fuel cell" that split water into hydrogen and oxygen.
Meyer's claims were never independently verified, and in 1996, he was found guilty of "gross and egregious fraud" by an Ohio court. Despite this, some people, including his brother, believe that he was poisoned, and conspiracy theories persist around his death.
In 2002, Genesis World Energy announced a device that could extract energy from water by separating hydrogen and oxygen and then recombining them. The company claimed in 2003 that this technology could power automobiles, and they collected over $2.5 million from investors. However, none of their devices ever made it to market, and in 2006, the owner of Genesis World Energy, Patrick Kelly, was sentenced to five years in prison for theft.
Another claim came from Daniel Dingel, a Filipino inventor who, since 1969, has said he developed technology to use water as fuel. In 2008, he was sued for fraud and sentenced to 20 years in prison. In the same year, a Japanese company, Genepax, unveiled a car it claimed ran on only water and air. However, this was dismissed by Popular Mechanics as "rubbish". The company's claims and demonstrations have been met with scepticism, as the process they describe appears to be a fuel cell converting hydrogen and oxygen into electricity, which doesn't account for the energy required to split the water molecules in the first place.
In conclusion, while there have been several claims of water-fuelled cars, none have been proven. The laws of thermodynamics present significant challenges to the feasibility of such technology, as splitting water molecules requires more energy than can be gained from the resulting hydrogen and oxygen.
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Natural gas: Natural gas is cheaper than residential electricity, but more expensive than retail electricity
The cost of using a car that runs on natural gas versus electricity depends on several factors, including the type of electricity, the location, and the vehicle's efficiency.
Natural Gas vs. Residential Electricity
Natural gas is generally cheaper than residential electricity. In some areas, natural gas can be up to four times cheaper than electricity for the same amount of energy. However, it's important to note that electric heat is 100% efficient, while gas is not, and gas heaters may have additional components that consume electric energy, narrowing the cost difference.
Natural Gas vs. Retail Electricity
On the other hand, natural gas is more expensive than retail electricity in certain scenarios. For example, in Washington state, with high electricity prices and very cheap electricity, it is significantly more expensive to drive a gasoline car than an electric one.
Other Considerations
The cost of electricity for vehicles can vary widely depending on the state and even within a state. For example, in 2020, Louisiana had a much lower electricity rate per kWh than Hawaii. Additionally, the type of vehicle and its efficiency can impact the overall cost.
When considering the total cost of ownership, factors such as maintenance, fuel, depreciation, and other costs over the vehicle's lifetime should be included. While natural gas may be cheaper in certain locations or for specific vehicles, the overall cost of ownership for electric vehicles is expected to decrease over time as renewable capacity expands and vehicle efficiency improves.
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Frequently asked questions
The cost of powering electric vehicles (EVs) is approximately 35-75% cheaper than gas-powered vehicles per mile. The annual fuel cost for all EVs on the market ranges from $500 to $1,850 per year, according to the Department of Energy (DOE).
Solar-powered cars are not yet mainstream, but the technology exists. The cost of solar-powered cars would depend on the cost of manufacturing solar panels and the economies of scale achieved.
The cost of fuel for natural gas vehicles can vary depending on location and natural phenomena such as earthquakes, tsunamis, hurricanes, and floods, which can affect production, manufacturing, and logistics.
Water-fuelled cars have been the subject of many fraudulent claims, and no verified technology currently exists. Therefore, the cost of fuel for water-powered cars is unknown.











































