Cheap oil threatens electric cars

Cheap oil threatens electric cars

April 22, 2020 0 By autotimesnews

Analysts believe that affordable gasoline can pose a threat to the further development of environmentally friendly transport.

According to South Korean scientist and Nobel laureate Rae Kwon Chung, cheap oil poses a threat not only to the economies of oil-producing countries. This can slow down the development of environmentally friendly transport, especially if the price of oil on the international market is fixed at a low level.

“This is one cause for concern. If the oil price remains as low as it is now, then the motivation to switch to electric cars and, in general, to electrify vehicles will suffer, ”Mr. Chung notes.

Note that, according to forecasts by experts at Wood Mackenzie, sales of electric cars this year may collapse by 43% – up to 1.3 million units. There are several reasons for this: the outbreak of the coronavirus pandemic and the potential delay in updating fleets due to falling oil prices.

Recall that the other day oil prices on the international market reached zero levels. In this regard, oil workers were forced to wholesale gasoline to their own detriment. However, our compatriots should not worry – retail fuel prices will not drop. All thanks to the damper mechanism and taxes.