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Why would gasoline become more expensive, if we expect a big part of the demand to go away by regulatory-forced migration to electric vehicles?
by PeterisP 4y ago
Why would gasoline become more expensive, if we expect a big part of the demand to go away by regulatory-forced migration to electric vehicles?
- jabl 4y agoA much smaller market would have to pay for the fixed costs of the oil industry? Gas stations close because a few Porsches, Ferraris and classic cars isn't enough to keep them afloat? Then OTOH, due to refineries working the way they do, if private cars are replaced by EV's, but long range trucking, marine shipping and aviation remain, refineries will have a huge problem what to do with the gasoline fractions.
- johannes1234321 4y agoDistribution is expensive. The dense network of fuel stations works due to the high demand. In addition there is a quite high price sensitivity: If fuel is a little bit cheaper customers are willing to take the small detour. With less demand there are less stations, less competition and still a expensive logistics network.