Drivers who have been watching fuel costs rise since the Iran war began are increasingly turning to electric vehicles as a potential alternative to gasoline. AP interviewed EV owners and experts who said higher gasoline prices can nudge interest in battery and electrified vehicles—though they also cautioned that electricity bills are not immune to cost changes and vary by local grid conditions.
One EV driver, Kevin Ketels of Detroit, bought an electric 2026 Chevrolet Blazer last year because he wanted to be part of the future, he said. With gas prices now climbing, Ketels said he is happy he is no longer filling up his 11-year-old gas-powered SUV. “Electricity can go up, but it won’t go up nearly as much as gas will and it won’t go up nearly as fast, either,” said Ketels, 55, an assistant professor of global supply chain management at Wayne State University.
Experts said that prolonged high gas prices may drive some EV interest and sales, especially if drivers assume electricity prices will not be affected by the crises. At the same time, they said electricity rates can still change due to broader forces in the power sector, rather than only international oil-price swings.
AAA’s data showed how quickly gasoline costs have moved for drivers, with the national average price of regular gas at $3.57 this week compared with $2.94 a month ago. Erich Muehlegger, an economics professor at the University of California, Davis, said residential electricity prices are regulated and are much less volatile than gasoline. He said that, as a result, EV owners are largely unaffected by oil-price shocks.
Holt Edwards, principal in Bracewell’s Policy Resolution Group, described the war as “an inflationary event” that may be contributing to electricity price pressures, even if it is not the dominant driver. Other energy analysts said that higher natural gas prices can raise the cost of generating electricity, while natural gas has not risen as quickly or as much as oil prices have recently.
Because the “energy component varies depending on the energy you’re using,” the electricity an EV charges from depends on the mix in a local grid, experts said. Pierpaolo Cazzola, an energy expert at Columbia University’s Center on Global Energy Policy, said the variation in the U.S. energy component is smaller than it is elsewhere, while additional energy sources—such as coal, nuclear and renewables—also shape grid costs.
Experts also said persistent war could affect electricity bills in the future, and that governments and countries considering the shift to electric transport may face tradeoffs in planning for cleaner power. “Clean power and electrification combined is what provides the most security,” said Euan Graham, an analyst at energy think tank Ember.
Edmunds’ analysis of consumer-shopping activity suggested that the pickup in prices has coincided with increased interest in electrified vehicles. Edmunds analyzed consumer shopping data for the week starting March 2, after the Iran war had begun, and found that interest in hybrids, plug-in hybrids and battery EVs made up 22.4% of all vehicle-research activity on its site, up from 20.7% the previous week.
Edmunds also looked back at the last major nationwide fuel price surges in 2022 and said consideration of electrified vehicles rose sharply then as well. Analysts cautioned that increased research activity does not always translate into purchases, because buyers’ decisions depend on whether they expect savings not only now but over time. Graham also warned that a sudden rise in EV demand could drive up prices, and he said the “real step change” would be whether governments shift tax and tariff policies around EVs.
For EV owners, the question is often whether switching from gas to electricity actually delivers savings. Michael B. Klein, a software developer in Evanston, Illinois, said he has driven EVs for the past eight years to save on fuel costs and because of environmental concerns. “I get that benefit no matter what,” Klein said, describing the payoff he sees when electrical-grid efficiency improves as renewables are added.
Peter Zalzal, an attorney with Environmental Defense Fund, said EV buyers have “really substantial” gas savings over the life of their vehicles even without government tax credits. “We’re talking about thousands and thousands of dollars” in savings, Zalzal said, adding that savings can grow as gas prices increase because fuel costs affect overall vehicle expenses.
Still, experts said the upfront cost of an EV can remain higher than a typical gasoline vehicle, even if operating costs are lower. Kelley Blue Book data cited by AP said new EVs sold for an average of $55,300 last month, while new vehicles overall sold for an average of $49,353.
Ketels said he believes EVs and renewable energy should be strategic priorities for individuals and the U.S. because they could be produced domestically and avoid “those fluctuations and those worries.” He also said the federal government’s withdrawal of many incentives puts the U.S. “at a disadvantage globally,” and he described the decision to withdraw incentives and to attack the sustainable energy industry as a mistake.