NEW YORK – Once insatiable global demand for gasoline is unlikely to return to pre-pandemic levels, according to a report released Wednesday by the International Energy Agency.
Gasoline consumption plummeted during the pandemic, as cities closed and many people started working from home, a trend that will almost certainly continue once the Covid-19 crisis is eased. Many governments have also promoted the use of low-carbon alternatives.
But the demand for crude oil is expected to continue to rise as developing countries with growing populations will use more of the fuel. But it’s not expected to return to pre-pandemic levels until 2023, according to the IEA.
The improbability of a full gasoline recovery is due to the fact that the increase in demand in developing countries will be offset by the shift of consumers to electric vehicles, by the greater efficiency of new models and by the growth of working from home, which makes travel be reduced. , the agency said.
Meanwhile, gasoline prices have risen. According to the AAA, a motorist aid organization, Americans pay 14% more for every gallon (3.79 liters) of fuel than in February and 29% more than a year ago.
That increase is partly due to winter storms in Texas that have brought several refineries to a halt. The price has also been boosted by rising crude oil prices reflecting expectations of an economic recovery as more people are vaccinated against the virus.