Middle East conflict drives up fuel costs while electric car charging gets cheaper

The conflict in the Middle East has made driving a diesel car roughly 270 Danish kroner (about €36) more expensive per 1,000 kilometres, while charging an electric vehicle (EV) has become cheaper, according to calculations by Danish motoring organisation FDM for public broadcaster DR.

The price surge for fossil fuels follows Iran’s recent blockade of the Strait of Hormuz, a critical chokepoint for about 20 percent of global oil supply. The disruption has driven up diesel and petrol prices, with diesel now costing 267 kroner more per 1,000 km compared to earlier levels. For a typical Danish driver covering 15,000 km annually, this translates to an extra 4,000 kroner (€535) per year for diesel and 2,250 kroner (€300) for petrol.

In contrast, electricity prices have remained stable—even declining slightly—thanks to strong wind and solar power generation in Denmark’s energy system, according to Ilyas Dogru, a consumer economist at FDM. “Beyond the fact that EVs are significantly more energy-efficient than petrol or diesel cars, we’ve seen electricity prices stay relatively stable,” Dogru said.

While gas and coal prices have also risen due to the energy shock, analysts expect only a modest increase in electricity costs. Kristian Rune Poulsen, an energy analyst at Green Power Denmark, forecasts an average rise of 15–20 øre (2–3 cents) per kWh over the next year, potentially adding around 1,000 kroner (€135) to annual electricity bills. However, the impact will vary: EV owners with home charging can largely avoid higher costs by charging during off-peak hours, while those relying on public chargers may face up to 1,000 kroner in extra annual expenses.

FDM’s analysis shows that EVs remain the cheaper option, even on the used market. A second-hand petrol car priced at 180,000 kroner (€24,000) with 15,000 km of annual driving costs 56,297 kroner (€7,500) per year, or 3.75 kroner per km. A comparable used EV costs 45,587 kroner (€6,100) annually, or 3.04 kroner per km. The savings grow with higher mileage.

Demand for EVs is surging, with 80 percent of FDM’s member inquiries now related to electric models. While used EV prices have yet to rise—due to strong supply from European exports—affordable options under 150,000 kroner (€20,000) remain scarce. Dogru expects this to change as more EVs enter the second-hand market.