As of March 23, 2026, the national average for gasoline in the United States has reached $3.96 per gallon, nearly a dollar increase since the onset of the conflict involving the United States, Israel, and Iran. This rise in fuel prices is seen as a significant factor that could influence consumer behavior towards electric vehicles (EVs).
BloombergNEF indicates that when gasoline costs exceed $4 per gallon, EVs become more economical than traditional vehicles, although local electricity prices also play a role in this calculation. In California, where gas prices are above $5 per gallon, EVs are already the more affordable option.
A 2022 AAA survey revealed that a majority of Americans would alter their driving habits if gas prices hit the $4 mark. Industry experts are noting a surge in online interest for EVs since the conflict escalated on February 28, although it's uncertain if this interest will translate into actual sales.
Historically, spikes in gas prices have prompted consumers to consider electrified vehicles more seriously. For instance, during the price surge caused by the war in Ukraine, EV sales increased significantly, with their market share rising by 69 percent from January to March 2022.