Combustion road vehicles: Unit economics
Why fuel is a small slice of a car's real cost
Why fuel is a small slice of a car's real cost What this tab covers What it costs to move a unit of energy this way: capital and operating costs, tariffs, utilisation and how it compares with the alternatives.For a car, fuel is a modest share of total cost (about a sixth in the US); depreciation dominates. For a long-haul truck, fuel and driver costs dominate and battery trucks are projected to undercut diesel in Europe within a few years.
Key costs
| Measure | Value | Note |
|---|---|---|
| Average US new car, total ownership cost | 77 US cents per mile (2025)8 | USD 11,577 a year at 15,000 miles; petrol at USD 3.151 per gallon |
| Fuel cost, average US new car | 13 US cents per mile (2025)8 | about 17% of total cost (calculated: 13/77) |
| Small petrol sedan ownership cost | 55.87 US cents per mile (2025)8 | half-ton pickup 98.54 cents |
| Diesel long-haul truck, Europe (model year 2030) | 1.13-1.15 EUR per km total cost of ownership9 | about 22% above battery electric (EUR 0.93-0.94/km) on 500-800 km return-to-depot duty (calculated) |
| Diesel regional truck, Europe (model year 2030) | 0.98 EUR per km9 | battery electric EUR 0.83/km; ICCT puts parity for this segment in 2023 |
| Fuel saving available for tractor-trailers | almost 40% before 2025, at least 50% by 2025-2030% fuel per tonne-mile against 2010 technology14 | one third to one half of the benefit from the engine |
Where the money goes
| Item | Share or amount |
|---|---|
| Depreciation (average US car) | USD 4,334 a year, about 37% of USD 11,577 (calculated)8 |
| Fuel (average US car) | about USD 1,950 a year at 13 cents per mile and 15,000 miles, about 17% (calculated)8 |
| Insurance (average US car) | USD 1,694 a year, about 15% (calculated)8 |
| Operating costs for EU trucks | more than 60-80% of total cost of ownership on average13 |
Worked example: AAA's 13 cents per mile at USD 3.151 per gallon implies about 24 miles per gallon (calculated), close to 10 litres per 100 km. A car turning 18-25% of its fuel into wheel energy loses three litres in every four, mostly as heat (calculated). That waste costs a US owner about USD 1,500 a year (calculated: 75-82% of about USD 1,950), small next to depreciation; for a truck covering 100,000 km or more a year, fuel is a main cost lever.
Sources
- Your Driving Costs 2025 fact sheet AAA, 2025
- A total cost of ownership comparison of truck decarbonization pathways in Europe: fact sheet ICCT, 2023
- Alternative vs traditional powertrain trucks in the EU: total cost of ownership 2024 (preview) IRU, 2026
- Advanced tractor-trailer efficiency technology potential in the 2020-2030 timeframe ICCT, 2015