Recent increases in international oil prices and subsequent hikes in domestic fuel costs have been felt by many vehicle owners. At the same time, claims have circulated online suggesting that rising charging costs for new energy vehicles are due to "using oil for power generation." Have EV charging expenses actually increased? Is there any real connection between electricity and oil prices? Multiple experts provide clarification.
Fuel-based power generation accounts for an extremely low proportion of China’s installed capacity, making it difficult to influence electricity prices. Lin Boqiang, Dean of the China Institute for Energy Policy, stated that while rising coal prices can lead to higher electricity prices, there is no direct linkage with oil prices. Oil and coal prices do not always move in sync; sometimes one rises while the other remains stable. Seasonal factors may cause slight increases in coal prices, which could lead to localized electricity price hikes in some regions.
The notion of "using oil for power generation" has even less impact on electricity prices in practice. The share of fuel-based power generation in China’s total installed capacity is minimal, and even when including gas-fired power generation, the combined proportion typically remains below 5%, which is insufficient to affect the national electricity price structure.
Wang Yongli, Deputy Director of the Energy Internet Research Center at North China Electric Power University, explained that fuel-based power generation primarily serves as emergency backup in special areas such as island microgrids or during extreme weather events. These units function as regulatory or emergency power sources. Additionally, recent data from provincial power trading centers shows that electricity prices have mainly experienced minor fluctuations within a certain range, with no substantial upward trend in recent weeks.
So why do some new energy vehicle owners perceive an increase in charging costs? Experts attribute this to the fundamental difference in pricing mechanisms between public and home charging stations. Wang Yongli noted that home charging stations are subject to residential electricity rates, which are set by the government and remain stable over time. Owners with home charging facilities hardly notice any price changes. In contrast, public charging station fees consist of commercial and industrial electricity rates plus a service fee. Commercial and industrial rates fluctuate monthly based on grid-procured electricity prices and vary during peak and off-peak hours. Charging during high-demand periods naturally results in higher costs.
It is worth noting that in December 2025, the National Development and Reform Commission and the National Energy Administration issued the "Basic Rules for Medium- and Long-Term Electricity Markets," which stipulated that, starting March 1, 2026, time-of-use pricing levels and periods would no longer be artificially defined for market participants. Several regions have since issued notices or sought public feedback to abolish fixed peak and off-peak pricing policies, shifting instead to a market-based floating pricing mechanism. In simple terms, electricity becomes cheaper when demand is low and more expensive when demand is high. This shift has led some EV owners to mistakenly perceive charging costs as having increased.
Tong Zongqi, General Manager of the China Charging Alliance Open Service Platform, explained that "time-of-use pricing" means electricity costs vary by time slot. The removal of fixed time slots means pricing is now adjusted in real time based on market demand rather than predetermined periods. He emphasized that this is not a price increase but rather a more flexible pricing mechanism, particularly during low-demand hours.
For example, in regions where time-of-use pricing has been abolished, such as Guizhou, Hubei, Shaanxi, Jilin, and Yunnan, EV owners who are unaware of the new pricing fluctuations may mistake market-adjusted peak or even super-peak rates for what were previously off-peak hours, leading to the misconception that charging costs have risen. Experts note that "peak-valley inversion" may occur in power systems. Under the new rules, EV owners can adjust their charging strategies based on real-time market information.
Wang Yongli pointed out that after the policy took effect, negative electricity prices were observed in many areas between 11:00 AM and 2:00 PM. This is because electricity demand decreases slightly during lunch hours when people are dining or resting. With China’s installed solar capacity now reaching 1.2 billion kilowatts, solar power generation increases after midday while demand declines, resulting in negative pricing. EV owners can take advantage of this period to charge their vehicles at lower costs.
Wang Yongli believes that market-based trading will lead to more refined and diversified pricing systems. In the future, vehicle owners will have more convenient access to real-time charging price information. For instance, charging station platforms or EV manufacturers may push notifications to users via official accounts. While the market is not yet fully developed, such services are expected to become more widespread.
Another factor contributing to the perception of rising charging costs is the service fee component of public charging station pricing. Tong Zongqi stated that as charging networks expand, the industry’s early phase of price wars fueled by subsidies is coming to an end. Service fees are not increasing but are returning to normal cost-based levels. He added that service fees will vary across different stations due to differences in operating costs, infrastructure investment, and maintenance. Operators will be encouraged to adopt differentiated pricing to guide user behavior.
