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Maguire: Rapid EV adoption in the US fuel market has caused a split.

Electric vehicles are on the rise across the US, creating a two-tiered market for fuel. This divides motorists into those whose prices are dictated by international oil markets and those whose bills depend on local electricity rates.

Geographical factors are becoming increasingly important in determining transportation costs, and who reaps the benefits of energy transition.

A COUNTRY WITH TWO FUEL MARKERS

The cost of EVs is measured in kilowatt hours, while the price of gasoline per gallon is expressed in US dollars.

Orennia, an energy intelligence platform, has published a list by US state that shows the cost of charging an EV in dollars per gallon.

Orennia estimates that the average cost of charging an EV in the United States is around $1.56 per gallon. The American Automobile Association reports that the current price to refuel a gasoline vehicle is $4.43 per gallon.

Orennia converts the cost of electricity at home overnight, since most US EVs charge their cars overnight. It compares two similar-sized cars, the 2025 Hyundai ioniq 6 and the 2025 Hyundai elantra.

The cost of recharging is different from the cost of gasoline. This can have a significant impact on the cost of living.

One group is still exposed to OPEC, refinery shutdowns, geopolitical shocks, and local fuel inventories.

One of the two depends on electricity generation mix, utility rates and state policies.

WIDE DIVIDE

Orennia data show that Hawaii is the most expensive for EV charging. The average cost there is $3.45 per gallon.

Wyoming is the cheapest for EV charging, with an average price of around $1.14 per gallon.

The $2.30 difference between the most expensive EV charging state and the cheapest EV charger states highlights the vast differences in charging costs across the nation.

The average national cost to charge an EV is about $1.56 per gallon. In 40 states, the average cost to charge an EV falls below $2.

According to the latest AAA data, California is the top state in the nation for gasoline prices. The average cost per gallon is $6.08.

Indiana has the lowest average gas prices, at around $3.92 per gallon.

Gasoline prices in 44 states are currently above $4.00 per gallon. The difference between the most and least expensive states is approximately $2.17.

The average national gasoline price is around $4.43 per gallon. This is 18% more expensive than the average cost of charging a mid-sized electric vehicle.

Global Ties

The smaller price difference between the most affordable and the least expensive gasoline markets, compared with the range in EV charging cost, highlights the greater exposure of US consumers to global markets.

There are certain regional trends on the US fuel market. The West Coast is among the most costly, while the Gulf Coast is one of the least expensive, aided by the proximity of refineries and energy production.

While there are differences at the state level, gas prices tend to move in a similar direction because they all share the same oil market.

When there are crude rallies, drivers from Arizona to Wisconsin feel the effects.

The gasoline market is still largely domestic and becoming increasingly global.

ELECTRICITY IS LOCAL

Electricity prices are clustered around regional utility structures, rather than a national pattern.

Hawaii is the most expensive for charging an electric vehicle, at approximately $3.45 equivalent to a gallon of gasoline. California is close behind.

Hawaii's grid is isolated, making it more expensive to generate electricity than in the continental United States. California, on the other hand, has a stretched infrastructure and rate policies that have led to higher utility costs.

New England's Connecticut, Massachusetts and Maine are also among the most expensive states.

Louisiana, Idaho Washington, Utah, and some Plains states are at the opposite end of the spectrum, where EV fuel costs are below or close to $1.10 equivalent per gallon.

Depending on where you are, these differences can be huge and change the appeal of EVs.

Fuel costs for a driver charging an EV in Hawaii are more than three-times higher than those of a driver in Louisiana.

Few consumers are aware that the cost to operate the same vehicle in different countries can be so vastly different.

But EVs are currently cheaper to refuel than gasoline everywhere. Even in Hawaii where electricity is most expensive, driving an electric vehicle costs less than regular gasoline.

Californian drivers pay among the highest prices in the nation for both electricity and gasoline.

Even then, EV owners still enjoy a significant advantage in terms of operating costs.

Future Control

Charges for fuel are lower than they were in the past, but this has implications that go beyond household bills.

Transportation costs in the US have been largely determined by factors that are beyond the control most consumers and state governments. Crude oil, refinery capacity and fuel inventories, as well as geopolitical events, were the main factors that determined what drivers paid to fill up.

In addition to utilities, power producers and state regulators, transportation costs are also increasing as EV adoption increases.

The amount drivers will pay per mile is likely to be influenced by residential electricity rates, plans for time-of-use pricing and investments in the power infrastructure.

Transport costs are now linked to both global and local energy markets.

This shift will result in new regional winners as well as losers.

Electric vehicles could offer a cost advantage to drivers in states that have abundant, low-cost electricity. Residents of states with high power prices will likely see less economic benefit from the switch.

In this?sense the switch from gasoline to electric power is not just about changing the fuel type that powers the cars of the nation. The price of mobility is changing as well.

The geographic factor will become more important as the number of Americans switching to electric vehicles increases.

These are the opinions of a columnist who writes for.

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(source: Reuters)