The electric vehicle (EV) revolution is well underway in the UK, as it is in major countries around the world. EV technology has improved at breakneck pace, taking the form of travel from mere curiosity to serious contender.
Major automotive manufacturers have already been developing electric alternatives to flagship models for some time, in response to emerging legislation set to ban the sale of new fossil-fuelled vehicles – and a wider shift towards net-zero policies on a global level.
But where there was consumer pushback owing to the convenience of petrol and diesel cars, there is now instead a grassroots shift in the making, caused by the cost of fossil fuels themselves. As the cost of running vehicles with internal combustion engines becomes too much for the average household, change is on the horizon.
Table of Contents
Fuel Prices in the UK
In the UK, fuel prices have been steadily ballooning since late 2021. As of May 2022, the cost of fuel had increased by 36.2% on the previous year. Fuel prices may be set to fall soon, but the stratospheric rise in cost may never be eliminated for drivers.
There have been a number of factors that influenced such an increase, from instability of oil supply emanating from the Russian occupation of Ukraine to the effects of the UK’s withdrawal from the European Union. Whatever the causes, the rise has been principally attributed to an initial spike in the wholesale price of oil – and speaks to wider economic uncertainty.
Inflation, and Impact on Business
The rise in fuel costs is just one aspect of a much wider crisis, with the rate of inflation expected to breach 10% by the end of the year. Costs are increasing across the board, from fuel and energy to basic supply and manufacture costs. Larger businesses are largely shielded from the effects, with some major institutions recording record profits. However, smaller businesses are finding profit margins narrowing in the face of growing costs.
The Switch to EVs
For the average household struggling to balance income with growing energy bills, the inflated cost of petrol is just too much to bear – and has inspired a sea change in public opinion towards EVs. Households may be considering the switch to leasing an electric vehicle, in order to enjoy the reduced cost of fuelling travel. Moreover, they can enjoy the convenience of just using EV home chargers instead of buying fuel.
Likewise, for businesses that rely on logistics and driver fleets to continue, the rise in fuel costs is an impossible overhead to reconcile. Government incentives to electrify fleets are coming to an end, but businesses are still taking the plunge in order to escape the black hole of petrol costs.
On both fronts, the move to EVs appears to be a shrewd one. Fuel costs may be on track to decrease, but oil is nonetheless a scarce resource that exacts a heavy environmental toll. The slow shift towards electric vehicles has just begun, but heralds wider change.
