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Maguire: ROI-Pain in the pump will give US EV Sales a new boost this summer

Despite President Donald Trump's decision to scrap federal subsidies for clean cars, the highest average gasoline prices?since 2022 are likely to reignite the demand for electric cars in the U.S.

According to LSEG data, U.S. gas prices will average $2.96 per gallon between May and 'August of this year. This is due to the onset of the U.S.-Israeli war against Iran which has'slashed a?oil shipments out of the Middle East.

This price is nearly 40% higher than the same months last year. The average American driver will pay more than 80 cents (21 cents) per gallon during peak driving season in the U.S.

Fuel costs are a daily reminder for many Americans. Used EV sales have seen a strong increase in 2026, and new EVs sales reached multi-month records in March.

The continued sticker shock at the gas pumps in the summer, when Americans are on vacation and driving long distances for fun, will likely increase the appeal of electric vehicles (EVs), which can be recharged at home or at the increasingly dense network of charging stations.

FULLY EXPOSED

Fuel prices in the United States have risen this year, despite the fact that the country is the world's biggest crude oil producer. This has added to the frustration of?U.S. consumers.

The Energy Institute reports that U.S. crude and condensate oil production has increased by 140% in the last five years, thanks to advances made in oil production using shale deposits.

Over the last decade, the revolutionary changes in oil extraction techniques have helped the United States go from being a "net importer" to an "exporter" of oil. This has sparked a boom among U.S. energy companies.

The U.S. Energy Information Administration shows that the average retail gasoline price is currently about 50% higher than it was in 2010.

ANECDOTAL APPEAL

U.S. drivers are increasingly turning to electric vehicles to reduce fuel costs.

The desire to reduce pollution has also sparked demand for EVs. Sales of EVs have increased by roughly 13 times over the last decade, and they will account for 10% of all new car sales between 2024 and 2025.

Since late 2025, the U.S. EV market has been slowing down. New EV sales have dropped sharply in the first quarter of 2026 compared to the previous year.

The recent surge in gas prices since the bombings of Iran led to a drop in fuel and oil shipments out of the Middle East, has reignited interest in EVs.

The number of searches on the internet for EVs or hybrid cars, and their sales, is a crude way to measure this interest.

Google, the most popular search engine for the U.S., reports that the search trends for "EV Sales", "EV Deals", "Hybrid Sales" and "Hybrid Deals" all reached record highs during the past few weeks as the Iran conflict drove gasoline prices up.

Search results do not always reflect actual sales, and it is only a matter of time before we know how many searches lead to actual purchases.

Combined with increased dealer incentives, and more aggressive'marketing of EVs from manufacturers' it is clear that the consumer awareness about EVs in 2026 has recovered strongly. Fuel costs are also steadily rising.

The allure of EVs and Hybrids that are cheap to operate could rise even higher in the months ahead. Forward markets suggest that fuel costs will remain high during what is usually the busiest driving season in the U.S.

These are the opinions of the columnist, an author for.

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(source: Reuters)