Goodbye, EV adoptions? U.S. average Gas Price falls Below $3 For First Time In 1,308 Days
The average price for a gallon of regular gas nationwide has dropped below $3 for the first time in three and a half years.
Hooray, say most drivers. But this is bad for the environment, not only because people are likely to drive their cars more often but also because the cost to operate a car is at a low enough level that EVs look less attractive.
READ MORE ABOUT EV ADOPTION AND GAS PRICES
Falling Gasoline Prices Pummel EV sales — And clean air targets are clobbered
Oil Prices Jump On Middle East Tensions, Could be Help To Green Economy
Gas prices reached $5 at the start of Russia’s invitation to Ukraine, with, among other factors, a wide belief that Russia’s huge oil production would not be available for export. However, it has quietly continued to send oil-hungry nations such as China and India.
Meanwhile, although OPEC+ has kept a lid on production, the U.S., is now the world’s largest producer, which has ensured that oil inventories stay high and prices low. Absent a geopolitical disaster in a major oil-producing nation, inventories will stay high.
Tax incentives gone?
Another factor hampering EV sales, especially in the U.S.: EVs remain about $10,000 more expensive than the equivalent gas-powered cars. Additionally, tax incentives of as much as $7,500 per may disappear under the incoming Trump administration.
All that on top of the fact that many Americans have been reluctant to buy EVs because of charging time, lack of charging stations, range anxiety and tire wear.
All of which means that cheap costs to run gas-powered cars give them another reason to stick with traditional transportation.
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