Math Lesson: How the Mitsubishi Outlander PHEV Can Save You Money

For many Canadians, the primary draw of a plug-in hybrid electric vehicle (PHEV) is the potential for significant long-term fuel savings without the sticker shock sometimes associated with full electric models. By leveraging lower electricity rates for daily commutes while maintaining a gasoline engine for longer trips, PHEV owners can drastically reduce their total cost of ownership.

The electrified vehicle (EV) landscape is changing by the day, with automakers expanding offerings. There is a diverse mix of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). First, the basics. Hybrids are best for those who want to dip their toes into electrification; their electric motors help with the gas engine’s acceleration and fuel economy, but there is no way to externally charge them. Battery electrics offer zero emissions with no stops for gasoline, but some models also suffer from comparatively limited range and slow charging speeds, which deters many people from taking the fully electric plunge.

And then there are PHEVs; these vehicles feature a shorter electric range than BEVs, but the onboard gas engine means they can be driven longer distances and fueled at conventional gas stations, alleviating so-called range anxiety. While they may still be more expensive to purchase than their purely gas-powered brethren, doing some math reveals that they make sense for many drivers.

Yes, the MSRP is higher, but when you look at the lifetime costs that come with a PHEV, you may find they make sense for your driving needs. Let’s take a look at the Mitsubishi Outlander PHEV, the best-selling PHEV in Canada for three years in a row.

The 2026 Outlander PHEV starts at $49,998 for the base ES S-AWC version, going up to $61,698 for the top-line GT Premium S-AWC or $63,048 for the GT NOIR special edition. The ES S-AWC Outlander PHEV qualifies for up to $2,500 in Federal EVAP funds, anywhere in Canada. And there are more EV incentives, depending on your province. These all add up to a big reduction in spending before you even drive off the dealer lot.

Let’s compare against the 26 Outlander:

Total Price Premium for PHEV: $11,100

And then there are the fuel savings. First off, consider that Statistics Canada has found the median one-way commute to the workplace for Canadians is less than 16 kilometres. Even if you factor in dropping the kids off at school, getting groceries or going to yoga, the average daily drive would be far less than the Outlander PHEV’s 72 km of all-electric range, meaning you could drive almost exclusively on electrons – it’s like owning a battery electric vehicle (BEV), without the higher BEV sales price.

When it comes to fuel savings, the average price of electricity in Canada is 19.2¢ per kWh; that means it would cost $4.63 to fill the 22.7 kWh battery from empty to full. Plus, if you live in provinces such as Quebec or Ontario that have lower-than-average electricity prices, that cost would drop to under $4 per day of driving. When you stop to consider that many people’s daily drive, from morning to night, would fall under 30 or 40 km, you start to see the real savings.

Of course, the beauty of a PHEV is that, when you do have farther to go, there’s a gas engine that can take over when the battery depletes. The Outlander PHEV has an efficient 2.4L four-cylinder engine with a combined fuel economy of 8.6 L/100 km. With the engine and electric power combined, the Outlander PHEV is rated at a remarkable 3.2 L_e/100 km.

Natural Resource Canada Fuel Consumption Ratings Search Tool estimates it would cost just $1,473 in fuel per year (based on 20,000 km of driving per year, with regular gasoline at $1.50/L and electricity at 18¢/kWh) for the 2026 Mitsubishi Outlander PHEV. The gas-powered 2026 Outlander, while still an efficient SUV, is estimated to cost $2,610 in fuel per year. As you can imagine, the longer you own the Outlander PHEV, the better the total cost of ownership will become overall.

Annual fuel savings for PHEV: $1,137