The shift towards electric vehicles and the decline in global oil demand are expected to bring cost savings to UK drivers, as highlighted by the International Energy Alliance (IEA). With a projected peak in oil demand by 2030, the increase in EV adoption aligns with the UK’s net-zero emissions goal.
Decline in Global Oil Demand Predicted to Benefit UK Drivers
Motorists in the UK driving vehicles from Tesco, Asda, Sainsbury’s, and Morrisons could notice an increase in savings due to a decline in fuel prices. As more drivers switch to electric vehicles (EVs), the demand for petrol and diesel is expected to drop. Starting from next year, this shift could lead to lower costs for traditional fuel, according to Fatih Birol, Executive Director of the International Energy Alliance (IEA).
Birol highlighted that global oil demand is slowing and is projected to peak by 2030. The growing number of EV charging points across the UK and a decline in oil consumption are major factors in this anticipated price reduction. John Lewis, CEO of Char.gy, emphasized the expansion of the on-street charging network, which now includes 22,000 charge points. Given that most UK journeys are under 100 miles, the availability of local charging infrastructure supports the ongoing transition to EVs.
The IEA report forecasts global oil demand to stabilize at around 106 million barrels per day by the decade’s end. The increase in EV adoption aligns with the UK’s broader strategy to achieve net-zero emissions, which includes a future ban on petrol and diesel cars.
