Union Road Transport and Highways Minister Nitin Gadkari has put forward a proposal that could dramatically reduce electric vehicle (EV) running costs in Maharashtra. Speaking at KPMG ENRich 2026, Gadkari suggested implementing differential electricity tariffs: Rs 3 per unit for night-time EV charging and Rs 5 during the day.
If adopted, this plan is projected to make electric vehicles substantially more affordable to operate compared to petrol and diesel cars, encouraging wider adoption across the state and potentially the nation.
Significant Savings for EV Owners
Under Gadkari's proposed night-time tariff of Rs 3 per unit, an electric car with an efficiency of 5 km per kilowatt-hour (kWh) would consume approximately 200 units to cover 1,000 km. This translates to an estimated electricity cost of just Rs 600 for a 1,000 km journey.
In stark contrast, a petrol car achieving 15 km per litre would require about 66.67 litres of fuel. At an assumed Mumbai petrol price of Rs 111.21 per litre, the total fuel expense for 1,000 km would be around Rs 7,414. Similarly, a diesel car with the same mileage would cost approximately Rs 6,522, based on a diesel price of Rs 97.83 per litre.
These figures highlight a potential saving of approximately Rs 6,814 for EV owners compared to petrol cars and Rs 5,922 against diesel vehicles over 1,000 km.
Annual Cost Comparison
- Electric Car (at Rs 3/unit): Approximately Rs 7,200 annually for 1,000 km monthly travel.
- Petrol Car: Around Rs 88,968 annually.
- Diesel Car: Approximately Rs 78,264 annually.
This means potential annual savings of about Rs 81,768 against petrol and Rs 71,064 against diesel, though actual savings would depend on vehicle efficiency, specific tariffs, charging losses, and driving conditions.
Boosting EV Adoption and Battery Costs
Gadkari presented his proposal to the Maharashtra Chief Minister, emphasizing the role of differential tariffs in accelerating EV adoption. The initiative aims to leverage solar power during the day while incentivizing EV owners to charge during off-peak night hours with lower rates.
The minister also expressed confidence in the future of electric mobility, predicting a significant increase in EV ownership. He noted the falling costs of lithium-ion batteries, which have reportedly decreased from approximately $150 per kilowatt-hour to $50, making EVs more accessible.
While the proposed tariffs could greatly enhance EV affordability, their implementation status and final impact will hinge on Maharashtra's tariff decisions and the expansion of affordable charging infrastructure.