Drivers could save £1,350 by switching from petrol and diesel to an electric car under new plans

Researchers looked at the full cost of running the 10 best-selling electric cars last year, including lease payments, charging, insurance and maintenance.

The report found that over a typical three-year lease, drivers could save an average of £4,070 by going electric, although this depends on the model.

Drivers choosing a Tesla Model 3 instead of a BMW 320 could save the most, around £4,744 a year, the report detailed.

Similarly, the Volvo EX30 was £1,875 cheaper per year than a BMW X1, and the Ford Explorer comes in £1,390 cheaper than the Ford Kuga.

However, not all electric cars were cheaper, as the Audi Q6 e-tron costs £125 more per year than the Audi Q5, while the Kia EV3 was £668 more expensive than a Volkswagen T-Cross.

Colin Walker, head of transport at the ECIU, said: "The war in Iran is once again highlighting the consequences of our dependence on volatile oil markets over which we have no control.

"Petrol prices are rising, which will result in millions of British drivers having to pay hundreds of pounds a year more to run their cars.

"It is no surprise that interest in EVs has risen significantly since the war started, since they offer drivers a way to shield themselves from the shocks we are seeing in global energy markets."

The report also suggested that leasing is becoming a popular and more economical way for drivers to switch to electric vehicles.

The analysis was based on three-year lease deals with 8,000 miles per year, an upfront payment equal to three months' rent, deposits, monthly fees, insurance, servicing and energy use.

It also assumed most charging, around 80 per cent, happens at home using cheaper overnight electricity, with the rest done at public rapid chargers.

Separate estimates showed how rising oil prices could hit motorists even harder. If prices surge to $150 (£112) a barrel, petrol could hit £1.90 per litre, pushing yearly costs up to £1,760.

The ECIU highlighted that Government policy is also playing a role, especially the Zero Emission Vehicle mandate, which forces carmakers to compete, helping bring down EV prices.

Mr Walker added: "Any U-turn on the mandate could weaken this dynamic in the midst of an energy crisis. It could introduce regulatory uncertainty at a crucial time in the UK car industry's transition."

The ZEV mandate requires all new petrol and diesel car sales to be electric by 2035, with at least 33 per cent of new sales being zero emission by the end of the year.

A separate report by CBI Economics found that failing to fully switch to electric manufacturing could cut the sector's economic contribution by 73 per cent, a £34.1billion hit, and put more than 400,000 jobs at risk.