Gas prices are on the rise in the US in recent months, but using data from GasBuddy the average price of a gallon of gasoline is still within the range of average prices the last 6 or so years. And prices both nationally and in two extreme markets – Houston and Los Angeles – are well below the highs of the last few years and from 2011-2014.
Why does the price of gas matter? I’ve conducted two regression analysis projects in 2017 and 2019 and in both cases the price of gas had the highest correlation with the EV sales share by US states. It remains unclear how much of this relationship is causation versus correlation. But I firmly believe that when gas prices get very high it increases the likelihood that consumers will consider a more fuel-efficient vehicle – whether one with better MPG, a hybrid, or electric (BEV and PHEV). In California, where I’ve lived my entire life, I believe gas prices need to reach about $4 per gallon to significantly change consumer behavior.