While gas prices continue to climb, electric car sales numbers are not expected to increase. Supply chain issues are partially to blame for the lack of inventory of electric vehicles. President Biden’s ban on Russian oil is expected to continue driving gas prices up.
At a Glance
- According to experts, electric cars are unlikely to see a boost in sales after gas prices reach an all-time high.
- The automotive industry continues to suffer from supply chain issues.
- President Biden announced a ban of Russian oil after the country launched an invasion of Ukraine.
Sales Numbers for Electric Cars are Unlikely to Rise Amid Gas Price Increase
Despite the alarming increase in the cost of gas, consumers looking to offset the price of fuel might be out of luck. Several experts weighed in on the demand for electric vehicles, adding that the supply chain issues that plague the automotive industry also impact the availability of electric cars.
“If your plan is to switch to an EV, a hybrid or even a small vehicle, good luck,” Michelle Krebs, executive analyst at Cox Automotive, told NBC. “There are not many of them available.”
Jessica Caldwell, executive director of insights at Edmunds.com, then explained: “Even for people who want to switch to electric, they have nowhere to go. Anything you’re looking to buy, you’re on a waitlist … or even if you’re looking to downsize your purchase, you’re paying top dollar. It just doesn’t make sense to make a move right now.”
Russian President Vladimir Putin’s invasion of Ukraine caused a tremendous surge in the price of gas. The national average for a gallon of gas jumped $0.45 in the past week, which is $1.30 more than this time last year. According to AAA, the overall average is at $4.06 per gallon. These prices are expected to increase as the United States and other NATO allies place sanctions against Russian oil imports.
As a result, many consumers considered a switch to electric vehicles. Unfortunately, they may face waitlists and other obstacles.
“People will buy what they can get,” Jay Joseph, American Honda Motor Co. vice president of marketing, explained. “There isn’t inventory for people to have choice. We’re seeing people accepting availability.”
President Biden Bans Russian Oil
Additionally, this issue will only become more prevalent. After much debate, President Joe Biden officially banned Russian oil imports from the United States. Inevitably, this will further affect the price of gas.
“The decision today is not without cost here at home,” President Biden told reporters. “Putin’s war is already hurting American families at the gas pump. Since Putin began his military buildup on Ukrainian borders – just since then – the price of gas at pumps in America went up 75 cents. And with this action it’s going to go up further.”
However, President Biden felt that the action was necessary and bipartisan. After all, the easiest way to help Ukraine is to hurt Russia–and its’ economy.
“I said defending freedom is going to cost,” Biden added. “It’s going to cost us as well in the United States. Republicans and Democrats understand that alike. Republicans and Democrats alike are clear we must do this.”