EV charging at Rs 3 per unit? Gadkari's plan could slash 1,000-km travel cost to Rs 600 from Rs 7,414

Electric vehicle owners could see a significant reduction in their running costs if Maharashtra introduces cheaper electricity tariffs for night-time charging. Union Road Transport and Highways Minister Nitin Gadkari has suggested charging Rs 3 per unit for electricity at night and Rs 5 during the day, a proposal that could make electric vehicles substantially cheaper to operate than petrol and diesel cars.

Speaking at KPMG ENRich 2026, Gadkari said he had made the suggestion to Maharashtra Chief Minister, highlighting the potential of differential electricity tariffs to encourage EV adoption.

The proposal envisages using solar power during the day while offering lower electricity rates at night, encouraging vehicle owners to charge their EVs during off-peak hours.

How much would travelling 1,000 km cost?

At the proposed night-time tariff of Rs 3 per unit, an electric car delivering 5 km per kilowatt-hour (kWh) would consume approximately 200 units of electricity to cover 1,000 km.

This translates into an estimated electricity cost of just Rs 600.

In comparison, a petrol car delivering 15 km per litre would require approximately 66.67 litres of fuel. At an assumed Mumbai petrol price of Rs 111.21 per litre, the total fuel expense would be around Rs 7,414.

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A diesel car offering the same mileage would cost approximately Rs 6,522, assuming a diesel price of Rs 97.83 per litre.

This means an EV owner could save around Rs 6,814 compared with a petrol car and Rs 5,922 compared with a diesel vehicle over 1,000 km.

EV vs Petrol vs Diesel: Running Cost Comparison

What could EV owners save annually?

For someone travelling 1,000 km every month, annual electricity expenses could be approximately Rs 7,200 at the proposed night-time tariff.

A comparable petrol vehicle would cost around Rs 88,968 annually, while a diesel car would require approximately Rs 78,264.

The potential annual savings would therefore be around Rs 81,768 against petrol and Rs 71,064 against diesel.

However, actual savings would depend on vehicle efficiency, electricity tariffs, charging losses and driving conditions.

Gadkari predicts faster EV adoption

Gadkari also expressed confidence about rising electric vehicle adoption.

During the event, he asked attendees how many owned electric vehicles. Around 20–25% raised their hands, following which he predicted a substantial increase next year.

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"Next year, 35-40% of you will be using electric vehicles," Gadkari told the gathering.

He also highlighted falling lithium-ion battery costs, saying prices had declined from approximately $150 per kilowatt-hour to $50.

While the proposed electricity tariffs could improve EV affordability, they have not been implemented. Their eventual impact will depend on Maharashtra's tariff decisions and the availability of affordable charging infrastructure.