Tue, 06 Jun 2023

BP: EV charging could be more profitable than pumping gas

Robert Besser
20 Jan 2022, 07:42 GMT+10

LONDON, England: Oil giant British Petroleum (BP) has said that the use of its pulse electric vehicle chargers is "on the cusp" of becoming more profitable than filling up with gasoline, which would mark a turning point for electric vehicles and "big oil."

Despite EV charging being seen as a loss leader for oil companies like Shell, BP's latest figures show, on a margin basis, its UK-based "BP pulse" network of fast battery charging stations is nearing the similar profitability levels as conventional gas stations, and could be profitable on its own by 2025.

BP's head of customers and products Emma Delaney told Reuters, "If I 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 fossil fuel."

BP reported its electricity sales for EV charging grew 45 percent from Q2 to Q3 of 2021.

"Overall, we see a huge opportunity in fast charging for consumers and businesses, as well as fleet services more generally. That is where we see the growth, and where we see the margins," Delaney added.

The London-based company plans to develop its EV charging business in the coming years from the current 11,000 stations to 70,000 charging points by 2030.

Unlike rival energy company Shell, which has its own EV charging scheme in play, BP will stay focused on fast DC charging in the 50 to 150 kW range.

"We have made a choice to really go after high speed on the go charging, rather than slow lamp post charging, for example," Delaney said.

The current consensus within the "EV bubble" is that big oil companies are against electrification, as EVs threaten one of their core business models.

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