NEW YORK (AP) – The ever-insatiable demand for gasoline in the world is unlikely to recover to pre-pandemic levels, according to a report Wednesday from the International Energy Agency.
Gasoline use cratered during the pandemic as cities closed and many people started working from home, a trend that is likely to continue as the COVID-19 crisis abates. Many governments have also pushed for low-carbon alternatives.
Demand for oil is expected to continue to rise as developing countries with growing populations use more of the fuel. But according to the Paris-based intergovernmental body, it’s not expected to return to pre-pandemic levels until 2023.
Gasoline demand is unlikely to return completely as increased demand in the developing world will be offset by the shift from consumers to electric vehicles, improving manufacturers’ fuel efficiency and increasing corporate teleworking while increasing travel declines, the report said.
In the meantime, gasoline prices have risen sharply. Americans pay 14% more for a gallon of regular than in February, and 29% more than a year ago, according to AAA.
That spike was caused in part by storms in Texas that cut power to millions of residents and took several oil refineries offline. The price of gasoline has also risen with oil prices rising, along with expectations of economic recovery as vaccines against the coronavirus are distributed.