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Gas prices remain below feared levels despite Middle East conflict

Gas pump

ATLANTA — Gas prices have risen since the conflict in the Middle East began, but WSB Consumer Expert Clark Howard says record electric vehicle sales around the world have helped prevent a more dramatic increase at the pump.

“The oddest effect has happened everywhere in the world except the United States. People have been buying electric vehicles this year at all time record levels,” Howard said.

Howard says increased EV sales outside the U.S. have contributed to lower global demand for gasoline, while existing stockpiles have provided an additional supply cushion.

“Everytime anyone, anywhere in the world buys an electric vehicle or what’s known as a plug-in or hybrid, that reduces future demand every mile that person drives for oil and gasoline,” Howard said.

Because gasoline is sold on a worldwide market, Howard says the impact of those sales is also being felt by American drivers.

“The demand for gasoline that would have driven the price of gasoline in the U.S. to $6-7 a gallon didn’t happen because it’s sold in the worldwide market,” Howard said.

Howard says the shift toward electric vehicles will ultimately hurt major U.S. automakers, including Ford and General Motors.

AAA puts the average price for a gallon of regular unleaded in metro Atlanta at $3.91 as of Tuesday, up 11 cents from a week ago.

The national average stands at $4.15 per gallon, nearly a quarter more than the metro Atlanta average.

WSB Radio’s Ashley Simmons & Sabrina Cupit contributed to this story.