Rising fuel prices may accelerate fleet shift to EVs, says FleetCheck

Rising petrol and diesel prices linked to the conflict in Iran could push more fleet operators toward electric vehicles (EVs), potentially bringing forward the tipping point at which electrification becomes financially viable, according to fleet software specialist FleetCheck.

Peter Golding, CEO of FleetCheck, said the sharp increase in fuel costs is prompting businesses to reassess the economics of their fleets, with some now reconsidering earlier decisions to delay EV adoption.

“Even if the conflict in the Middle East ended today, fuel prices are likely to remain high for a long time to come,” he said. “This inevitably changes whole-life cost calculations around electric vehicle adoption.”

While electricity prices are also expected to rise, Golding noted that the cost of charging an EV remains significantly lower than fuelling a petrol or diesel vehicle on a per-mile basis. This difference becomes more pronounced for high-mileage fleets, where fuel savings can quickly add up.

“The more miles each vehicle covers, the greater the cost advantage,” he explained. “For some fleets, this could be the moment when electrification starts to make clear financial sense.”

Golding added that in certain cases, the savings on fuel alone could outweigh some of the operational barriers that have slowed EV adoption, such as infrastructure challenges or changes to fleet operations. “The longer the war goes on, the more electrification comes into play,” he said.

Beyond cost considerations, concerns around fuel supply security may also influence decision-making. Although there has been little disruption at fuel stations so far, ongoing geopolitical tensions could raise questions about the reliability of petrol and diesel availability.

“We haven’t yet seen widespread queues at fuel stations but the situation does mean fleets for whom supply is a key issue might begin to view electrification differently,” Golding said. “One of the under discussed advantages of electrification is that electricity supply is far less likely to be disrupted in the same way as pump fuel.”

He pointed out that fleets with access to depot or on-site charging infrastructure are particularly well-positioned to mitigate such risks, as they are less dependent on external fuel supply chains.

As fuel prices remain elevated and uncertainty persists, FleetCheck suggests that more businesses may begin to view electrification not just as an environmental choice, but as a strategic and financial necessity.