Gas vs. electric driving costs · adjust vehicle and price period below
Why is it like this in Texas?
Texas's residential electricity rates sit at about 16.2¢/kWh — below the national average but above what abundant in-state natural gas and wind generation might suggest, in part because of the deregulated retail market structure. Gasoline is among the cheapest in the country. Electric still wins on per-mile cost for a typical PHEV, though the margin is smaller than in low-rate states like Washington or North Dakota.
In the news · Texas
Federal NEVI funding uncertainty under Trump is stalling EV charging buildout decisions in Texas communities, leaving home charging as the dominant option and making residential electricity rates the key variable in Texas PHEV cost calculations.
Texas Senate Bill 6 gives ERCOT new authority to monitor and curtail power to large industrial consumers — whether SB6 successfully shields homeowners from industrial load growth will determine whether Texas electricity rates stay competitive for home PHEV charging.
The Trump administration's February 2025 freeze on NEVI EV charging funds threw North Texas municipal charging projects into limbo, slowing station construction and keeping home electricity rates as the primary cost factor for Texas PHEV owners.
Repurposed EV battery packs are being deployed in Bexar County to store wind and solar energy and sell power back to ERCOT — better grid storage can moderate wholesale price spikes in the deregulated Texas market, potentially stabilizing the variable electricity rates PHEV owners pay.
Curated coverage of Texas's EV/PHEV cost, policy, and infrastructure story. External links open in a new tab.
Southwest region comparison
| State | Electric ¢/mi | Gas ¢/mi | Cheaper | Annual diff |
|---|---|---|---|---|
| Arizona | 4.7¢ | 7.8¢ | ⚡ Electric | $364/yr |
| New Mexico | 4.5¢ | 6.8¢ | ⚡ Electric | $287/yr |
| Oklahoma | 3.8¢ | 6.1¢ | ⚡ Electric | $272/yr |
| Texas | 4.8¢ | 6.3¢ | ⚡ Electric | $191/yr |
