NEW YORK — The average price of regular gasoline across the United States climbed to $4.446 a gallon on Sunday, according to AAA, marking a sharp increase of roughly 35 cents from the prior week and $1.275 more than the same period last year. This surge has reignited the financial debate over electric vehicles (EVs) as household budgets feel the pinch at the pump.
The jump comes amid a turbulent spring for oil markets, with crude oil prices rising above $100 a barrel and concerns about the Strait of Hormuz disrupting global supply. AAA also reported that the average public EV charging price edged up to 41 cents per kilowatt-hour, a penny more than the previous week, adding another factor for consumers weighing their options.
Despite a 27% year-over-year drop in U.S. EV sales during the first quarter, according to Cox Automotive, the recent gasoline price spike has driven a notable increase in shopper interest. Cox noted that EV consideration climbed 16% from the fourth quarter, while interest in used EVs surged 30% in March alone. “Gas prices don’t translate to sales immediately, but it definitely translates into consideration,” said Stephanie Valdez Streaty, director of industry insights at Cox Automotive.
The price gap between new EVs and traditional gasoline or hybrid models has narrowed to roughly $5,800, the tightest spread on record, according to Kelley Blue Book. The average transaction price for a new EV in March was $54,508, a 2.8% decline from the same month last year, with discounts averaging 14.6% or nearly $8,000 off the sticker. Tesla’s Model Y alone accounted for a third of all EVs sold in the first quarter, while Toyota posted modest year-over-year gains in its EV segment.
However, the path to widespread EV adoption remains bumpy. Sticker shock continues to put many models out of reach for budget-conscious buyers, and automakers have trimmed or delayed electric vehicle lineups, reducing the number of available models. “We’re losing a lot of models,” noted Loren McDonald, chief analyst at EV charging firm Chargeonomics.
Regional price volatility underscores the market’s unpredictability. In Delta, Ohio, a pair of travel centers briefly slashed gas to $2.63 a gallon, drawing long lines of cars, only to spike to $4.79 by Friday evening. “I thought I was hallucinating,” one driver told WTVG.
Looking ahead, the calculus for consumers is uncertain. If oil prices slip, the urgency to switch to EVs may wane. Conversely, persistently high gasoline could push shoppers toward used EVs, hybrids, or fuel-efficient gas cars, without necessarily making the leap to a new electric vehicle. For now, it is the price at the pump, not policy, that is testing household budgets and reshaping the EV conversation from a technological gamble to a monthly expense question.
