NEW YORK – The once insatiable global demand for gasoline is unlikely to return to pre-pandemic levels, according to a report by the International Energy Agency released on Wednesday.
Gasoline consumption plummeted during the pandemic, when cities closed and many people started working from home, a trend that will almost certainly continue when the covid-19 crisis eases. Many more governments have been promoting the use of low-carbon alternatives.
But demand for crude oil is expected to continue to rise, as developing countries with growing populations will use more fuel. But it is not expected to return to pre-pandemic levels until 2023, according to the IEA.
The likelihood that gasoline will recover completely is due to the fact that the increase in demand in developing countries will be offset by the change from consumers to electric vehicles, by greater efficiency of new models and by the growth of work from home, which reduces travel, the agency said.
Meanwhile, gasoline prices have risen. Americans are paying 14% more per gallon (3.79 liters) of fuel than in February and 29% more than a year ago, according to AAA, a motorist assistance organization.
This rise is due in part to winter storms in Texas that paralyzed several refineries. The price has been further boosted by rising crude prices due to expectations of an economic recovery as more people are vaccinated against the virus.