Crude oil prices have increased by more than 30% since Russia’s invasion of Ukraine to hit their highest levels since 2008 last week. This comes as Western countries impose several economic sanctions and import embargoes on Russia. Russia is the second-largest exporter of crude oil in the world. Nevertheless, the U.S. this week banned oil imports from Russia, causing prices to climb further. U.S. diesel prices are currently near their highest level since 2014, while Brent Crude is currently above $109 per barrel. As the Russia-Ukraine crisis escalates, oil analysts expect oil prices to cross $300 per barrel.
Therefore, consumers are now more likely to replace their fossil-fuel-powered vehicles with battery-run electric vehicles, given the rising cost of gasoline. With lower operating costs and federal tax credit incentives, switching to EVs now could allow people to save hundreds of dollars in gas expenses. Furthermore, as local semiconductor production ramps up, EV prices might decline marginally in the near term as production costs fall.
