High gas prices may drive EV interest and sales

Experts say prolonged high gas prices may drive some EV interest and sales, especially if drivers assume their electricity prices won't be affected by the crises. But many factors influence consumer EV purchases — and electricity rates

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Electric vehicles charge at a station on Wednesday in Lincolnwood, Illinois.

(Associated Press)

When Kevin Ketels bought an electric 2026 Chevrolet Blazer last year, he wasn't thinking about the cost of gas. He just thought EVs were better and "wanted to be part of the future." Now that the Iran war is spiking prices at the pump, the Detroit man is happy he is no longer filling up his 11-year-old gas-powered SUV. "Electricity can go up, but it won't go up nearly as much as gas will and it won't go up nearly as fast, either," said Ketels, 55, an assistant professor of global supply chain management at Wayne State University.

Experts say prolonged high gas prices may drive some EV interest and sales, especially if drivers assume their electricity prices won't be affected by the crises. But many factors influence consumer EV purchases—and electricity rates. Drivers of gas-powered vehicles are much more vulnerable to fluctuating prices that result from global conflict than those who charge their cars. The national average for a gallon of regular gas this week was $3.57, up from $2.94 a month ago, according to AAA.

Meanwhile, "residential electricity prices are regulated and are much less volatile than gasoline prices," said University of California, Davis economics professor Erich Muehlegger.

"As a result, EV owners are largely unaffected by oil price shocks." But experts say electricity prices have been increasing nationally for a variety of reasons, including surging power demand from new data centres.