NEW YORK (AP) – The world’s once unsaturated demand for gasoline is unlikely to recover to pre-pandemic levels, according to a report by the International Energy Agency on Wednesday.
Fuel consumption cratered during the pandemic, while cities closed and many people started working from home, a trend that is likely to continue as the COVID-19 crisis eases. Many governments have also insisted on low-carbon alternatives.
Demand for oil is expected to continue to increase as developing countries with growing populations use more fuel. According to the Paris Intergovernmental Agency, it is not expected to return to pre-pandemic levels until 2023.
Demand for gasoline is unlikely to return, as increased demand in the developing world will be offset by consumers switching to electric vehicles, manufacturers improving fuel efficiency, and businesses increasing telecommunications while reducing travel.
Meanwhile, petrol prices have risen. According to AAA, Americans pay 14% more for a liter of ordinary than in February, and 29% more than a year ago.
The increase was partly caused by storms from Texas that knocked down the power of millions of residents and took several oil refineries offline. The price of petrol has also been increased by rising oil prices, along with expectations of economic recovery as coronavirus vaccines are distributed.