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As War Drives Up Gas Prices, Drivers Weigh Switch to Electric Vehicles
Experts say prolonged high gas prices may boost EV interest, but electricity rates are also rising
Mar. 12, 2026 at 12:19pm
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As the Iran war drives up gas prices, some drivers who have switched to electric vehicles are glad they made the change, while others are considering making the switch. Experts say high gas prices could boost EV sales, but electricity prices have also been increasing, so the savings may not be as substantial as some expect.
Why it matters
The war's impact on gas prices highlights the vulnerability of gas-powered vehicles to global conflicts and supply shocks, while also raising questions about whether EV owners are truly insulated from price hikes. The transition to electric vehicles is seen as a way to reduce dependence on fossil fuels, but the extent to which it can provide long-term cost savings for drivers is still uncertain.
The details
Drivers of gas-powered vehicles are much more vulnerable to fluctuating prices that result from global conflict than those who charge their EVs, as residential electricity prices are more regulated and less volatile than gasoline prices. However, electricity prices have also been increasing nationally for a variety of reasons, including surging power demand from new data centers. The extent to which oil and gas conflicts could translate to the electricity sector is yet to be seen.
- The national average for a gallon of regular gas this week was $3.57, up from $2.94 a month ago, according to AAA.
- 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 accounted for 22.4% of all vehicle research activity on their site that week, up from 20.7% the previous week.
The players
Kevin Ketels
A 55-year-old Detroit man who bought an electric 2026 Chevrolet Blazer last year, not thinking about the cost of gas but wanting to be "part of the future".
Erich Muehlegger
A professor of economics at the University of California, Davis who says that "residential electricity prices are regulated and are much less volatile than gasoline prices, so EV owners are largely unaffected by oil price shocks".
Holt Edwards
A principal in Bracewell's Policy Resolution Group who says the war is "an inflationary event" that is "certainly a contributing factor" to increasing electricity prices, though probably not the main driver.
Pierpaolo Cazzola
An energy expert at Columbia University's Center on Global Energy Policy who says "the variation of the price of the energy component is smaller than it is elsewhere" in the U.S. electricity grid.
Michael B. Klein
A 56-year-old software developer in Evanston, Illinois who has driven EVs for the past eight years to save on fuel costs and because of environmental concerns.
What they’re saying
“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.”
— Kevin Ketels, Assistant professor of global supply chain management at Wayne State University
“As a result, EV owners are largely unaffected by oil price shocks.”
— Erich Muehlegger, Professor of economics at the University of California, Davis
“This is an inflationary event. Is this the driver in electricity prices? I think probably not. But it's certainly a contributing factor.”
— Holt Edwards, Principal in Bracewell's Policy Resolution Group
“The energy component varies depending on the energy you're using and the price of the energy that you're using to generate electricity. What happens is that in the U.S., the variation of the price of the energy component is smaller than it is elsewhere.”
— Pierpaolo Cazzola, Energy expert at Columbia University's Center on Global Energy Policy
“Every time electrical grid efficiency improves — especially as renewables are added — 'I get that benefit no matter what. They can improve the efficiency of gas engines, but you have to get a new car in order to reap the benefit of that.”
— Michael B. Klein, Software developer in Evanston, Illinois
What’s next
Experts say persistent war could affect electricity bills in the future, and that is all the more reason for countries to transition to clean power. The extent to which the war's impact on gas prices leads to a surge in EV demand will depend on whether buyers expect to save money not just now, but in the long run.
The takeaway
The war's impact on gas prices highlights the vulnerability of gas-powered vehicles to global conflicts and supply shocks, while also raising questions about whether EV owners are truly insulated from price hikes. The transition to electric vehicles is seen as a way to reduce dependence on fossil fuels, but the extent to which it can provide long-term cost savings for drivers is still uncertain.
