Electric vehicle fast chargers are soon becoming more profitable than petrol pumps, according to energy firm BP. Though the provision of EV charging services have been a loss-making operation for energy providers and aren’t expected to become profitable before 2025, BP’s fast-charging outlets are approaching margin levels seen from the petrol business, Reuters reported.
“If [we] think about a tank of fuel versus a fast charge, we are nearing a place where the business fundamentals on the fast charge are better than they are on the fuel,” BP head of customers and products Emma Delaney told Reuters. The “strong and rising” demand for rapid chargers in Britain and Europe has already brought margins close to those of traditional petrol filling, Delaney added.
According to Reuters, BP reported gross margins of US$3.5 billion (RM14.7 billion) in retail fuel sales in 2020; its customers and products division reported USD$2.6 billion (RM10.9 billion) in net profit in the first nine months of last year, or around 17% of the company’s net profit, according to the news outlet.
In terms of BP’s electricity sales, EV charging gained 45% in the third quarter of 2021 compared to the previous quarter, and it plans to expand its network from 11,000 charging points at present, to 70,000 charging points by 2030, Reuters reported.
Delaney however did not disclose profit and loss for EV charging, or when overall profit from the EV busines would overtake that of traditional fossil fuel. BP rival Shell aims to have 500,000 charging points globally by 2025, Reuters added.
Meanwhile in Malaysia, Shell announced last week that its Recharge EV high performance charging (HPC) network in the country has commenced operations, and will be comprised of 12 charging points at six Shell stations located along the North-South Expressway. The network’s operations commenced with the introduction of the charging point in the Tangkak Lay-By (South Bound).
This follows its earlier announcement last year of its plans for Southeast Asia’s first cross-border HPC network, which includes a further 18 Shell Recharge 50 kW fast-charging points and 87 Greenlot public charging points in Singapore.
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Ya of course, when electricity is more expensive per KWH than generated by petrol/diesel, EV is a real scam on the world. It is like mining bitcoin is more harmful to environment than factory activity. Petrol pump turnaround time is 10-15mins while an EV charger is 2-3hours, how else can they make profits with such low turnaround.
EVs have zero admission… that’s no scam.
The charging time thou is still unreasonable… really need some fast swap tech.
Naive kid, what do you think generate electricity. It is still majority coal. Super green house substances. Unless all use nuclear, water and coal just cant cope with electric car demand.
Don’t worry future will be free electricity generate by solar energy
Use it on your smart phone first professor. Lol
Well obviously if an EV takes like 30min to charge from 0-80% that itself will cost around (RM20 x 6 = RM120) instead of a 60L of full tank of RON95 which will complete in less than a minute.
And they say Electricity is cheap here in Malaysia?
Yes, you are absolutely right unless they come up with a technology to do cell swapping. Just pay and swap cells and manufacturers have to use standard cell tech. Thoughts?
Then grey party will recon battery and sell to these so call swap company and then risk fire and explosion. Our mind is always full of lubang lubang.
If u charge at home, you dont need eithr petrol pump or ev charger station. But need at least 500km+ batt capacity ev car. The cost will be super efficient. And tesla long version should be the best
CO2 is cheap & abundant. We humans & every living organism produce it. Plants do take in CO2 but that’s only in the sun light & eventually they produce it after sun down. We humans take it several steps further by producing more of it with our modern machines for industry, commerce & transport. So, lets not everybody all exhale at the same time…
Electricity is cheap in Malaysia compared to most or other parts of the world, however take into consideration from the business end, electricity, if I recall correctly, cannot be technically sold by non-power production companies in Malaysia, and the tariff rates differs say from residential to industrial. That being said, because non-power producing companies can’t sell electricity by the kWh, the only other way is to sell it based on a time basis. Now, take into consideration the cost of developing the infrastructure and the maintenance that comes with it. Once all the costs are approximated, the price comes in. Again, this price is really on a starting basis since there aren’t much (refer to economy of scale etc) so no doubt there is a price gap at the moment. Until the infrastructure is developed and the cost of EV charging kiosks becomes a norm, only then can one see a more realistic pricing compared to the current. Then comes in the reality of the charging times, as it goes with battery tech in EV, still needs development to take in fastcharge etc so with the current rates it seems a bit on the high side. Again, this is hopefully going to change and improve over time.
Let’s put it this way, EV is still at an infancy and we’re having to play catchup when the time comes. Instead of waiting around until it becomes a norm, infrastructure needs to be built now, if not, by the time it does come, the cost of catchup would be a bit OTT. Just my 2 cents. Also, comparing EV with ICE is just unfair because the whole EV point is net-zero emissions and to achieve that overarching goal will not come cheap and is a premium. Going green is always gonna be a huge cost imho but that is the price to pay for a greener future. Good things ain’t cheap.
Your mind is cheap and simple. Works and thinks like a naive student. Instead of probable arguments or business proposal, yours more like an essay for examination point. Omitted too much important real world substances while full of fantasy. Electric if you take into account of the full supply line it will never be free and clean. Green or not, it is just human thinking. How do you explain Earth millions years ago facing great green house effect raising temperature to unbearable territory, while human still doesnt exist yet? It is the algae from sea that turn us blue. Earth is orange red last time. We overhyped our existent.
1 hour of charging cost RM 244….
Don’t worry future will be free electricity generate by solar energy
Manufacturers should come out with standard battery pack so that EV can easily exchange at petrol(or what we call) stations at reasonable price than wasting hours to recharge, this should be the direction of future EV
No wonder gov suddenly pushing hard on using EV so that in future they can rob you in broad daylight. Some more they just announced to restructure the tariffs on electricity. .
So you can imagine what’s coming next.
Don’t be surprised if your electric bill jump sky high if you plan to charge your EV at home.
Worst of all what if another flood disaster hit us. All the EV will definitely be total lost. Until the government has really equipped us sufficient facilities and support i urge the public not to buy EV with your egos only.