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Surging demand for electric cars decreases demand for gasoline
(MENAFN) Experts in the oil derivatives industry have observed that the increasing prevalence of electric vehicles, along with elevated fuel prices, has significantly reduced local gasoline consumption since the start of this year.
The Ministry of Energy and Mineral Resources recently reported a 4percent reduction in gasoline 90 sales, with volumes falling to 385.5 million liters in the first quarter of this year from 403.5 million liters during the same period last year. In contrast, gasoline 95 sales experienced a 3percent increase, climbing to 34.1 million liters from 33.2 million liters over the same period.
Data from the Jordan Free Zones Investors Authority show that electric vehicles accounted for the majority of clearance traffic in the Zarqa Free Zone during the first half of this year, comprising 66.5percent of the total. The number of electric vehicles cleared reached 22,604, a substantial rise from 13,861 vehicles in the same period in 2023, marking a 63percent growth rate.
Simultaneously, the overall number of vehicles cleared from the Zarqa Free Zone increased to 33,954 in the first half of this year, up from 31,465 vehicles during the same period last year, as per data released earlier this month. Nevertheless, the clearance of gasoline vehicles plummeted by 57percent, decreasing to 2,683 vehicles from 6,310 vehicles in the same period last year.
Energy researcher Amer al-Shobaki pointed out that the decline in gasoline consumption can be attributed to several factors, chiefly the reduced demand from consumers due to rising gasoline prices. These price hikes are primarily driven by the fixed tax imposed on each liter of gasoline. The government levies a lump sum tax on oil derivatives, collecting 575 fils per liter of gasoline octane 95 and 370 fils per liter of gasoline octane 90, while kerosene is taxed at 165 fils per liter.
The growing adoption of electric vehicles and the resulting decline in gasoline consumption underscore a significant trend in the energy sector, shaped by both economic pressures and environmental considerations.
The Ministry of Energy and Mineral Resources recently reported a 4percent reduction in gasoline 90 sales, with volumes falling to 385.5 million liters in the first quarter of this year from 403.5 million liters during the same period last year. In contrast, gasoline 95 sales experienced a 3percent increase, climbing to 34.1 million liters from 33.2 million liters over the same period.
Data from the Jordan Free Zones Investors Authority show that electric vehicles accounted for the majority of clearance traffic in the Zarqa Free Zone during the first half of this year, comprising 66.5percent of the total. The number of electric vehicles cleared reached 22,604, a substantial rise from 13,861 vehicles in the same period in 2023, marking a 63percent growth rate.
Simultaneously, the overall number of vehicles cleared from the Zarqa Free Zone increased to 33,954 in the first half of this year, up from 31,465 vehicles during the same period last year, as per data released earlier this month. Nevertheless, the clearance of gasoline vehicles plummeted by 57percent, decreasing to 2,683 vehicles from 6,310 vehicles in the same period last year.
Energy researcher Amer al-Shobaki pointed out that the decline in gasoline consumption can be attributed to several factors, chiefly the reduced demand from consumers due to rising gasoline prices. These price hikes are primarily driven by the fixed tax imposed on each liter of gasoline. The government levies a lump sum tax on oil derivatives, collecting 575 fils per liter of gasoline octane 95 and 370 fils per liter of gasoline octane 90, while kerosene is taxed at 165 fils per liter.
The growing adoption of electric vehicles and the resulting decline in gasoline consumption underscore a significant trend in the energy sector, shaped by both economic pressures and environmental considerations.
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