Just a random musing. As EV’s become more popular, means less gas being used, means potentially lower prices since supply of gas should increase? Or do they just cut production and keep prices the same.

Wondering what will happen in the long term.

  • kmosimanB
    link
    fedilink
    English
    arrow-up
    1
    ·
    10 months ago

    It’s complicated to NO.

    Peak gasoline consumption may have been in 2018. Gasoline demand will probably only continue to decrease from here on out.

    That doesn’t mean that Gasoline supply will stay the same though. Refineries will be adjusted to make more of other products. In the short term, gas prices may drop because of over supply, but then supply will be cut.

    As supply goes down we will eventually reach a point where gas becomes a niche product and it costs more again because it’s rare.