Rising Gas Prices Push U.S. Car Shoppers Toward EVs

Gasoline prices in the U.S. surged amid Iran tensions, and Edmunds reports rising interest in EVs and hybrids. Learn how fuel costs and financing shape buyer decisions.

Rising gasoline prices in the United States are once again pushing more car shoppers toward electric and hybrid models, but the shift is colliding with a much harsher financial reality than it did a few years ago. If a fuel spike once made replacing a vehicle look like a straightforward way to cut costs, in 2026 that logic runs into expensive loans, heavier monthly payments, and a far more costly new-car market.

The trigger this time is clear. As tensions around Iran escalated and concerns grew over oil flows through the Strait of Hormuz, gasoline prices in the U.S. moved sharply higher. According to AAA, the national average for regular gasoline reached $3.63 per gallon on March 13, 2026. A week earlier, it stood at $3.32. In California, where fuel is typically more expensive, the statewide average climbed to $5.416 per gallon. Against that backdrop, interest in alternatives to conventional gasoline vehicles rose almost immediately.

That shift is visible in fresh Edmunds data. In the week beginning March 2, 2026, electrified vehicles — including battery-electric models, plug-in hybrids, and hybrids — accounted for 22.4% of all vehicle research activity on the platform. A week earlier, the figure was 20.7%. In other words, the share of attention going to these vehicles moved up noticeably within days as fuel prices started climbing.

The pattern is not new. In 2022, during the fuel shock that followed Russia’s full-scale invasion of Ukraine, electrified vehicle consideration on Edmunds rose from 17.5% in February to 25.1% in March. The current movement clearly echoes that period, even if it has not yet matched that earlier peak.

Still, there is an important difference between 2022 and 2026. Even when a more efficient vehicle looks like the rational choice, buying one has become much harder. Edmunds says the average monthly payment on a new vehicle was $656 in February 2022. By February 2026, that figure had climbed to $775. Average total interest paid over the life of a loan jumped from $5,395 to $9,784. That is why growing interest in EVs and hybrids should not automatically be read as a signal of immediate sales growth: the desire to save on fuel is increasingly running into the high cost of getting into a new vehicle at all.

At the same time, the broader market backdrop still supports electrified transport. According to the IEA, global electric car sales exceeded 17 million units in 2024, and electric vehicles accounted for more than 20% of all new cars sold worldwide. This is no longer a niche segment or a temporary reaction to a single crisis. It is a firmly established part of the automotive market.

The current moment could also benefit the used market, not only new models. CDK Global says more than 300,000 EVs are expected to return from lease in 2026. For some buyers, that could matter as much as gasoline prices themselves: with new vehicles becoming harder to afford, a used EV may look like a more realistic way to reduce exposure to fuel-price swings.

Even here, though, the picture is not completely simple. An EV does shield its owner from direct gasoline price shocks, but the financial advantage depends heavily on how it is charged. AAA has published a U.S. average public charging price of $0.418 per kWh. That means the benefit is especially strong for drivers who can charge at home, while those who rely heavily on costly public charging networks may see a smaller advantage.

In the end, the market is showing a familiar reaction: when fuel gets more expensive, interest in electric vehicles and hybrids rises. This time, however, the story is not just about the price at the pump. It is also about the total cost of owning and financing a vehicle. That makes the surge in EV attention entirely logical, but it may take longer for that interest to turn into actual purchases than it did during the last major fuel-price shock.