Is UK Demand For EVs Increasing Due To Fuel Price Hikes?

At the beginning of May, the two-millionth electric vehicle (EV) was registered in the UK, marking a milestone for the transition to an electrified transport network. 

Data from the Society of Motor Manufacturers & Traders revealed that electrified cars – which covers both hybrid plug-in models and full EVs – accounted for over half of new vehicle registrations in the UK in April this year.

EV car registrations accounted for 26 per cent of the new car market in April, while plug-in hybrid models increased to a 13.8 market share and hybrid EVs made up a further 13.3 per cent of the new car market. 

At the same time, registrations of new diesel vehicles fell by one per cent, although petrol registrations increased by eight per cent in April. 

But does all of this point to a wider trend of EV adoption, perhaps driven in part by the soaring cost of fuel at the UK’s forecourts?

 

What has caused the price of fuel to increase?

The main cause of the current spike in fuel prices at the pumps has been the US and Israel’s war on Iran. Since the conflict started, Iran has closed the Strait of Hormuz, a key shipping route out of the Middle East.

This has restricted how much oil can leave the region, which has had a knock-on effect on oil prices. 

Although the price of a barrel of oil has fallen on news that the US and Iran are resuming negotiations to bring the war to an end, there are no guarantees that a ceasefire and resolution will be agreed, meaning oil prices are still volatile. 

For those of us who drive petrol or diesel vehicles, the impact has been significant. Average prices for unleaded fuel have hit 156.9 pence per litre, while the average cost of a litre of diesel in the UK is 188.5 pence at the time of writing.

This has meant those who have hybrid or full EVs have remained better off as the price of oil has risen globally. 

 

Do UK drivers support a wider EV rollout?

One survey recently published by the UK Sustainable Investment and Finance Association would suggest that the majority of British drivers do support wider use of EVs. 

Their poll found that almost three-quarters (74 per cent) support their local council rolling out electric charging points in their area, with many wanting to see an increase in such amenities. 

Among those surveyed, 42 per cent felt their council should be doing a lot or a little more to increase the rollout of EV charging points, while 32 per cent were happy for their local authority to continue their rollout at the same pace.

According to figures produced by Zapmap, at the end of April this year there were over 120,000 public EV chargers in the UK. But clearly there is demand for more.

Given that drivers are increasingly turning to EVs to help them avoid the price hikes at the pumps, it’s unsurprising that the demand for charging points is increasing. 

Many businesses are also increasing the number of charging points they provide, particularly retailers with premises on retail parks where drivers are likely to spend a bit of time shopping and therefore welcome the opportunity to use a charger. 

 

Is the government supporting the EV rollout?

In many ways, the UK government is supportive of the electrification of our transport network. In December last year, the Department for Transport shared new guidance for councils about safe and effective cross-pavement charging solutions.

The idea is to share approaches that can help more households that don’t have private driveways to invest in EVs and feel as though they have options to charge their vehicles at home and not rely on public charging stations. 

Two options for cross-pavement charging solutions were recommended in the new guidance – permanent under-pavement cables and the more cost-effective option of cable channels embedded in existing pavements. 

By having either a cable channel or under-pavement cable, the risk of trips on wires will be significantly reduced. 

While such solutions won’t be appropriate everywhere, the fact that the government is thinking about how to make EV charging accessible to more people tells its own story. 

All of this could therefore provide a boost to the UK’s EV sector, which in turn could be good news for organisations that manufacture the chemical components essential for EV batteries. 

With demand for EVs seemingly on the up, EV battery raw material suppliers will likely experience a corresponding uptick in demand for what they offer, helping to bolster the country’s chemical industry.