Are Electric Vehicles Changing the Fuel Market?

The future of road fuels is changing, and the energy transition is the path that many countries in Europe and around the world are taking. Significant emission and sustainable vehicle production goals have been set for 2050, but societal customs and habits have made the beginning of this transition a bit challenging in some regions. However, how is it going so far? The transition to renewable energy can be observed from some fuel-related data, and we can see a decline in the demand for oil, gas, and coal, with gasoline and diesel sales decreasing.

The Global Fuel Market Experts from Bloomberg, Reuters, and the International Energy Agency (IEA) have published a series of analyses based on 2022 data from the Society of Motor Manufacturers and Traders (SMMT) and the UK Competition and Markets Authority. The numbers show a significant drop in gasoline and diesel sales, with electric cars recording a 40% increase compared to 2021, increasing their market share from 12% to 17%, surpassing diesel car registrations.

The price of fuels in the UK has become "the most volatile ever," and gasoline and diesel sales are declining. Gasoline has reached its lowest point since 1990 (excluding 2020 and 2021 marked by Covid-related restrictions), and diesel has not sold so little since 2015.

In India, analysts are optimistic about the future of electrification. Demand for traditional fuels will peak by 2030, earlier than the initial prediction of 2040, thanks to investments by automakers and companies in the electric vehicle ecosystem. The New Delhi government aims to increase the electric vehicle market share to 30% by the end of the decade, thanks in part to purchase incentives.

The IEA's 2023 Oil Market Report predicts that electric cars will reduce global crude oil demand by almost 900,000 barrels per day this year. Elon Musk has also made his prediction about the future of oil, anticipating the peak in five years.

In conclusion, electric cars are becoming an increasingly tangible reality, and the future of road fuels is changing. Are you intrigued by electric driving, but the list price of electric cars scares you? Edilfar Rent allows you to drive some of the best electric cars on the market with promotions designed for your every need. Visit our offices or book a car on our website.