OPEC Is Helping You Justify An Electric Car
This week OPEC and its partners announced a voluntary oil production cut of millions of barrels per day. It’s a move that is solely focused on increasing profits by raising crude oil prices and it will wind up costing drivers more at the pump.
While this promises to set off a variety of geopolitical reactions, let me highlight one that is getting less attention. With this move, Russia and OPEC are strengthening the financial case to switch from gasoline to electric vehicles, ultimately accelerating their own irrelevance on the world stage.
It’s not merely the price of gas that makes production cuts difficult. It is also the volatile changes that throw commutes, errands, and household budgets into disarray. It’s hard to plan when fuel costs are unpredictable.
We can put the cost volatility into perspective by comparing average gasoline prices in the US to average residential electricity costs.
The energy rates for charging an electric car are consistent, while gasoline prices react to the seasonal whims of dictators and oil barons around the world. This chart actually smooths monthly gas price fluctuations, making the price look more stable than it really is – I think we can all recall the roller coaster in gas prices that we have seen this year alone.
The theme of last quarter’s EV market report was the rise of the used EV market. In the next 10 days, we will publish our latest report on used EV trends that will explore how the used EV tax credits promise to accelerate EV adoption in the US, which is already happening faster than the experts predicted.
People are justified in their frustration with volatile gas prices. And while no one is forcing them to convert from gas to electric, I hope they remember that the electric panel in their garage is waiting.
If you would like to explore the costs of charging, our team wrote a helpful charging cost guide. I think you’ll be pleasantly surprised.