As economy struggles, gas prices must decline
Who killed the electric car? Perhaps that statement should have been ‘what killed the electric car’, and that same ‘what’ might strike again. Just as a number of plug-in vehicles make their way into the market, gas prices appear primed to crash according to many energy analysts.
Certainly, most following the energy markets know that long term energy prices will trend higher. Still, energy prices have a nasty habit of spiking and crashing. Recently, gas and oil prices were on the rise, yet little in the fundamentals justified this increase outside of speculation, and with the world’s economy looking quite shaky, pricing decreases are accelerating. In fact, this summer’s driving season could realize cheaper gas prices than last year.
While it’s doubtful that cheaper gas prices will kill the electric car this time around, it’s hard to imagine any real interest in plug-in vehicles, or even any growth in hybrid demand, without a significant increase in gas prices. And with massive debts weighing down on the European and American economies, coupled with a frothy Chinese economy, relevantly higher gas prices could be several years away.