A pay-per-mile road tax system could soon apply to every driver in the UK, warns a prominent motoring expert. Officials confirmed in the recent Autumn Budget that electric vehicles (EVs) will face these fees starting in 2028 through a new Electric Vehicle Excise Duty (eVED). EVs will incur a 3p charge per mile, while plug-in hybrids pay 1.5p per mile.
Offsetting Fuel Duty Losses
The policy addresses declining revenues from petrol and diesel fuel duties as more drivers adopt electric and hybrid models. Without changes, Department for Transport (DfT) projections show one in five car drivers paying no fuel duty by the decade’s end. Combustion engine drivers would continue averaging £480 annually, a situation officials describe as unfair.
Expert Foresees Expansion
Motoring journalist and YouTuber Shahzad Sheikh, founder of the BrownCarGuy channel, predicts the scheme will extend beyond EVs. He argues it represents a permanent replacement for fuel duty.
Shahzad stated: “Pay-per-mile is the replacement for fuel duty. It’s not a temporary measure, it’s not a trial, it is a structural shift. Believe you me, I think it will expand to everyone else as well soon. In pure Treasury terms, mileage is attractive, it is protectable, it scales with population, it never disappears. Unlike fuel duty which fades as cars become more efficient or drivers move to electric or hybrid.”
Cost Comparison for Drivers
Petrol and diesel drivers currently pay about 5p per mile in fuel duties, making the new 3p EV rate comparatively lower. This affordability gap fuels concerns over the policy’s long-term impact on EV adoption.
Industry Backlash
The Society of Motor Manufacturers and Traders (SMMT) criticizes the plan as the wrong approach, warning it may dampen interest in electric vehicles amid ongoing debates.
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