TINC: “Gas prices staying low…thank an EV.” Multiple factors affect gasoline prices. There was a bounce in 2023 following release of covid-19 restrictions. But now market growth is being kneecapped by penetration of electric vehicles. Consultancy Wood Mackenzie argues that gasoline demand is likely to rise only 340,000 barrels per day [bpd] to reach 26.5 millions bpd in 2024. Compare this to the 700,000 bpd growth in 2023. China is nearing the point of peak transport fuel demand, + the US has already surpassed it. “For this year Chinese demand will grow by only 10,000 bpd, due to higher EV uptake.” According to the International Energy Agency, China will account for more than half of global EV new vehicle sales this year. “For every sign of an EV slowdown, another suggests an adolescent industry on the verge of its next growth spurt.” For most automakers in the US, the first quarter was a blockbuster. “Six of the 10 biggest EV makers in the US saw sales grow at a scorching pace compared to a year ago — up anywhere from 56% at Hyundai-Kia to 86% at Ford. A sampling of April sales similarly came in hot.” It’s a tale of not two cities, but rather 2 EV markets, ‘where consumers are flocking to some brands in record numbers while turning their backs on those with inferior battery range, slower charging and high prices, said Stephanie Valdez-Streaty, director of industry insights at Cox Automotive.’ Delays of some new vehicles also added to the perception of a market running out of steam. “Right now Tesla doesn’t have new models, Ford doesn’t have a lot in the pipeline. But Hyundai, BMW, Kia, Cadillac — they’re really moving the needle forward.” The irony is intense: ICE drivers should thank EV drivers for helping keep the price of gasoline low.It’s all about supply + demand. So, don’t gloat, just gently let them know.
EVs Lower Retail Gasoline Prices
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