Gas Prices Are Up, And So Are Searches For EVs: Edmunds

• Edmunds found that more shoppers are searching its website electrified, as the war in Iran causes a dramatic spike in gas prices.
• 22.4% of searches were for electrified models during the week of March 2, up from 20.7% the week prior. 
• Searches for full EV models are responsible for most of the increase. 

Turn on the news, and it’s not hard to see that the world right now is in turmoil, and it’s affecting gas car owners greatly. Due to the conflict in Iran, global oil markets have been thrown for a loop, as Iran’s oil-producing capabilities are in turmoil, while the country has effectively shut down one of the most important international oil shipping channels in the world. This has spiked the price of oil, which in turn has had a not-so-ignorable effect on the prices of gas. Across the country, prices have jumped, with the national average up to $3.58 a gallon, over 50 cents more than it was a month ago.

That has more Americans thinking about electric cars. This isn’t just a hunch, either; Edmunds reported that the share of searches for electrified vehicles—that is any hybrid (both plug-in and not) or full EV—has jumped over the last week. It said that for its car-shopping arm, these vehicles represented about 20.7% of all searches on its site at the end of February. When measured for the week of March 2, the percentage of queries jumped to 22.4%, with most of the gain coming from full EV searches. Edmunds says this tracks with the last recent time where oil spiked, during the initial invasion of Ukraine by Russia in early 2022. At that time, electrified vehicle research queries rose from 17.5% to 25.1% of overall searches within a month.

The effect on oil prices has been felt by many, not just in the U.S.; Japan, and South Korea are taking measures to attempt to keep oil and gas prices somewhat manageable. Every day, consumers are seeing these gas prices, and likely are thinking twice when it comes to figuring out what car they’ll choose next. 

Edmunds says that’s a problem, too. Things are worse now than in 2022; there’s a dearth of affordable cars, while average prices and amounts financed have continued to rise. Add in the potential of lost value for someone trading out of a less efficient car, and there are now more consumers than ever who can’t trade out of their cars if they wanted to. When it comes to high gas prices, they’ll just have to take it on the nose.

On the plus side, those in a position to do so may find themselves still in a buyers’ market for used EVs. We’ve already talked about some strong deals here at InsideEVs, like the Hyundai Ioniq 6. More used models are likely to come onto the market soon, as leases end and these cars end up on the used car market. And while used Tesla prices have crept up, the vast majority of used EVs remain remarkably cheap. 

I can’t help but feel that, as exciting as it is that there are a few more used EVs on the market, the waffling from automakers and an overall lack of support from the U.S. government is a structural failure here. No one is sure when this conflict will end, and what effect it’ll have on gas prices by the end, yet manufacturers have postponed or canceled EVs for the U.S. market right as they’d be needed the most.

True, there are some cheaper EVs on the market, like the Nissan Leaf and Chevy Bolt, but there are caveats to them. The Bolt’s time on the market is limited, while the cheaper version of the Nissan Leaf is indefinitely on hold. Cheap models like the Kia EV3 and EV4 are also postponed, with no clear path to U.S. sales. If you’re looking to buy a brand new lower-priced EV, then the choices aren’t as vast as they could be. 

Photo by: Brian Silvestro / Motor1

It’s still not quite clear how things will play out. Although some experts say we could hit the 2008 Great Recession level of $140 per barrel, the prices of oil have already sunk from their high point of the conflict so far. How long they’ll stay down is anyone’s guess, especially as the Iranian conflict continues. If gas prices stay high, though, then expect the demand for EVs, both used and new, to grow. 

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