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Will Rising Gas Prices Make Green Energy The Affordable Option?

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Over the past few months, gas prices have been skyrocketing. Due to sanctions on Russia, gas is at a premium, even though the US only gets a small proportion of its gas from Russia. The reality is that lower supply automatically raises prices.

The high gas prices have impacted everything, including basic necessities. Transport is a huge part of every industry, including food. Already-high inflation has only gotten worse. The most direct aspect for most people, however, is the cost of filling up a tank with fuel.

This has led people to begin to question whether the tide will finally turn for green energy. Electric vehicles (EVs) have typically been the more expensive choice. They cost a lot to buy and repair.

Even insurance generally costs more, although that is changing with some insurers providing benefits to green drivers. Find out more about how car insurance works to see what factors influence premiums.

But for all that electric vehicles themselves are expensive, running them is not. Charging your car is far less expensive than filling it up with gas. If the price of gas continues rising, will electric vehicles become the cost-effective option? Here are some of the things to consider.

Rising energy prices

It is not just petroleum that has seen its price rise due to Russia’s invasion of Ukraine. All energy imports have been affected, and energy prices are rising across the board. As such, we can expect to see electricity become more expensive for the time being. This will make it more expensive to charge an EV.

That being said, the impact on the cost of recharging your car will be nowhere near as big as the impact on the price of a tank of fuel. You can still save significant money every month by using electricity rather than gas.

EV prices will drop

Electric cars are currently expensive for a number of reasons. Manufacturers do not have the infrastructure to build EVs that they do for traditional cars, which have been developing for over a century. Getting parts is difficult, as is repairing parts without having to replace ​ significant portions of the vehicle. Mechanics who can work on electric cars are also in short supply.

This is one of those matters that resolves on its own, however, as more and more people start using EVs. Manufacturing is ramped up, leading to the development of better technology and the training of more mechanics. Over time, EVs will become cheaper simply by virtue of their ubiquity. As things stand, they are still fairly niche, even with big corporations creating exciting new offerings.

Supply chain issues will slow the process

Unfortunately, this price drop will take longer than it might have without the interruption of the pandemic. Since 2020, supply chain issues have impacted every industry, particularly hurting manufacturers of cars and other heavy machinery. Fewer vehicles have therefore been manufactured, and prices of all types of vehicles are going up.

The prices of various EVs are getting closer to those of traditional cars, but all of them are currently on an upward trend. This has the knock-on effect of causing drivers to buy second-hand cars rather than new cars. Since there are few EVs in circulation, most of these drivers will have to opt for traditional vehicles.

Ultimately, the cost of EVs will continue to approach the cost of petrol-powered cars but the process will take time.

Global uncertainty

Whether or not rising gas prices turn the tide for green energy solutions remains to be seen. It may depend on how long this invasion continues and what the world decides to do in response. If things get resolved fairly quickly, prices will go back to normal and driving a traditional car will no longer be so expensive. If not – as appears more likely – gas prices may just become unsustainable for the average American.

If you're interested in buying an electric car, now might be the right time. At the very least, you will get a great vehicle, and you'll get to save money on fuel as well.