The war in the Middle East has resulted in widespread disruption in the energy market as the Iranian government announced the closure of the Strait of Hormuz, a vital trade route responsible for over a fifth of the world’s crude oil supply.
Fuel Prices Soar
The disruptions have also led to challenges at the pump, with fuel prices soaring at the pump across the world. Consumers across the globe are shifting towards EVs, with Australia reporting a 161% surge in EV car loans.
However, per data from Cox Automotive, U.S. EV sales are likely to fall by 28% in March, a month into the war, as the average national price for a gallon of gasoline exceeded the $4 mark.
This begs the question: Are EV sales going to rise in the U.S. as the conflict continues? Daniel Greene, who is the Senior Director of Consumer Protection and Product Safety Policy at the National Consumers League, thinks that demand will shift towards more fuel-efficient vehicles.
Shift In Demand
“The cost of fuel is the most significant contributor to the overall cost of vehicle ownership,” Greene said in his conversation with Benzinga. “As fuel costs generally rise, there is a shift to more fuel-efficient vehicles,” he said, adding that …
This post was originally published here