Falling Gasoline Prices Pummel EV sales — And clean air targets are clobbered

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After what appeared to be a good chance that crude prices would move toward $90 a barrel because of unrest in the Middle East, the IEA’s report on falling global demand has sent prices in the other direction. Crude has fallen from just over $77 to $74 in just a week. And weak demand in China, strong production in the U.S., and a possible price war among OPEC+ members should push the figure lower.

READ MORE ABOUT GAS PRICES
China’s Big Advantage
Europe’s Disadvantage

Gas prices are more tied to crude prices than any other factor, with the average cost of a gallon of regular having dropped from $3.68 a year ago to $3.21. Transportation, refinery capacity and taxes are far less critical, and when gas prices are low, EVs are less attractive for fuel-price-conscious Americans.

Other EV Issues
EVs already face well-chronicled challenges. Range anxiety, the limited number of working charging stations, expensive EV prices compared with conventional cars, tire wear and cold-weather charging issues will take time to improve. That leaves the fuel price as the primary differentiator between gas and electricity.

Proponents of the costs of operating an EV have valid arguments. However, when gas prices are low, they are harder to sell.