Persistently high prices for gasoline are frustrating many Americans and causing a political headache for the administration of President Joe Biden, but they also might be accelerating the process of transitioning the country to more widespread use of vehicles that run on renewable energy — particularly electricity.
Experts say that sales of electric vehicles, or EVs, tend to rise when fuel prices do, though they cautioned it’s difficult to draw a straight line from prices at the pump to car purchases.
“People buy electric cars for lots of reasons, so they're not completely dependent on gas prices, but that's certainly reinforcing it,” said Genevieve Cullen, president of the Electric Drive Transportation Association, a trade group representing manufacturers of electric vehicles.
An estimated 468,000 new EVs were sold in the U.S. from the beginning of the year through September, according to data collected by Atlas Public Policy, a group that tracks the market for EVs. That represents a 45% increase over the 323,000 EVs sold during the entirety of 2020.
Looking solely at the month of September 2021, U.S. consumers bought 57,000 new EVs. That was 63% more than the 35,000 sold in September of 2020, and a 90% increase over the 30,000 sold in September 2019.
FILES - In this file photo taken on August 13, 2021, cars charge at a Tesla super charging station in Arlington, Virginia.
Gas prices make EVs attractive
According to the Bureau of Labor Statistics, the cost of one kilowatt hour of electricity in the United States rose from 13.5 cents in October 2020 to 14.2 cents in October 2021, an increase of 5.2%. By contrast, the BLS found the average cost of a gallon of gas rose from $2.23 in October 2020 to $3.48 in October 2021, a 56.1% increase.
“High gas prices are tough on Americans driving gasoline vehicles,” said Luke Tonachel, director of clean vehicles and fuels for the Natural Resources Defense Council. “The volatility in the global price of the oil used to make gasoline is a constant worry.
In the U.S., though, the structure of the electricity market keeps prices from increasing sharply.
“Electricity prices are regulated, and therefore quite stable,” said Tonachel. “An EV driver can expect to pay a quarter or less as much per mile as [someone] driving a gasoline vehicle.”
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