Gasoline Demand Reduces With Surge In Electric Vehicles For 2024

By Shubhendra Anand , 05 June, 2024

The clean energy transition shows compelling results in the transportation sector as consumers opt for electric vehicles. The strategic changes in the automotive industry reveal that gasoline demand is still higher, although electric vehicles will increase in demand in 2024. This statement requires data to support it but fails to do so. The green transformation increased the demand for electric vehicles in the market. However, electric vehicles struggle to overcome conventional vehicles for many reasons. Surveys in 2024 report that gasoline demand is still growing despite a surge in electric vehicles.

Electric vehicles are gaining momentum in the United States and China, with increasing demand for decarbonization in 2024. Hence, the gasoline demand is slowing down with the increasing production of electric vehicles. The expanding penetration of electric cars in the automotive industry is anticipated to lower the demand for gasoline by 50 percent in 2024. China is the leading country in electric vehicle sales. Here, the electric vehicles sector covers 60 percent of sales globally. Simultaneously,  China leads the production of electric vehicles.

Consequently, China represents 40 percent of electric vehicle exports in 2024. The number has doubled in units to 2.4 million compared to electric vehicle exports in 2023. Experts suggest that China's growing adoption of electric vehicles is targeted to meet 40 percent of cars sold by the end of 2030. In contrast, the United States automotive market shows different scenes. Electric vehicle adoption is slower in the United States as compared to China. However, the volume of electric vehicles contributes larger shares to global sales in 2024. Hence, the growing adoption of electric vehicles is the pressing reason for electric vehicles to report two-thirds of car sales by 2030 globally.

Meanwhile, gasoline demand is declining due to a surge in electric vehicle demands. The clean energy transition is the main reason behind the low demand for fossil fuels. However, gasoline demand will continue to rise 2024 by 340,000 barrels per day. Thus, it is expected to result in 26.5 million barrels per day compared to 700,000 barrels per day in 2023. Therefore, gasoline demand is anticipated to be low for 2024.

    Transportation Sector Sees Reduction in Gasoline with Increasing Electric Vehicle Sales