- Every EV on the road is reducing the demand for fossil fuels.
- Even a small drop in demand causes a slight reduction in fuel prices.
So, in a way, EVs are actually helping to lower the cost of running ICE vehicles (to some degree).
You’re welcome.
I’ve read that gas demand has been lower than expected, especially in China, possibly due to the increasing number of EVs. But I always wonder why diesel lovers who hate EVs don’t want anyone to buy one. They should actually be encouraging it so fuel demand drops, and they save more on gas themselves!
@Robert
That’s true for the short term, but eventually, supply will go down as well, and it’ll be harder to get fuel. If prices drop too much, it won’t be profitable to extract or refine anymore. Plus, as reserves run low, the cost of getting that oil out goes up.
Then there’s competition for oil from industries that can’t switch to electricity, like plastics. Refineries might shift focus there. Meanwhile, people driving gas or diesel vehicles are starting to see the writing on the wall, which causes fear, anger, and hate—classic reaction to change.
@Mark
Diesel should only be for things like… main battle tanks.
Amelia said:
@Mark
Diesel should only be for things like… main battle tanks.
Not sure if you’re serious or joking, haha. It’s hard to tell these days!
They could just increase taxes on fuel instead of trying to invent new taxes for EVs.
You’re right for now, but in the long term, demand for fuel will drop even further, which will lead to less investment in the fuel industry. Fewer people using fuel means fewer gas stations, and eventually, charging points will outnumber pumps—like what’s happening in Norway already.
I’ve seen this before with older cars that needed premium petrol. Once newer cars didn’t need it, most gas stations stopped carrying it. Now it’s hard to find and super expensive—around $10 per gallon.
@Thomas
$10 is cheap! looks at Finnish gas prices
@Thomas
That’s exactly right. Eventually, gas stations will close as demand drops. The ones that stay open will raise prices, and that’ll push even more people to switch to EVs.
For years, oil companies have held onto their reserves, believing prices will be higher next year. This was usually true. They could reduce supply and push prices up, often forming cartels with other oil nations to make sure everyone was on the same page. Now, I love that the US is going against this trend and pumping more oil to drive down prices for Russia.
So yes, you’re right that lower demand lowers prices, but in the long term, supply will also go down. Oil companies focus on extracting the easiest reserves first. When they start working on harder-to-reach reserves, their costs will go up. If prices drop too much, some reserves will become unprofitable to extract until prices rise again.