Expensive European electricity slows the push toward electric cars
High electricity prices across Europe are likely to limit the speed at which countries replace gasoline and diesel vehicles with electric ones in the near term. Analysts in the Strategic Research Center note that this factor weighs heavily on the overall affordability of electric driving for consumers and fleets alike.
Even a ban on importing petroleum products from Russia is not expected to move the needle much, as the energy crisis has already driven price spikes across the board. Gas and electricity have surged, while the cost of petroleum products has risen much more modestly in comparison.
The rapid ascent of electricity prices undermines a key advantage of electric vehicles: the lower cost per kilometer to operate. This weakness complicates efforts to accelerate the shift away from oil-based transport, despite ongoing policy debates and incentives aimed at reducing oil dependence.
Experts warn against expecting a swift policy pivot in Europe that would end oil fuel use as sanctions and other geopolitical factors continue to shape energy markets. The region faces a complex mix of supply constraints, price volatility, and the need to balance climate goals with short-term consumer costs.
On February 24, 2022, Russian President Vladimir Putin announced a special military operation in Ukraine, citing requests for assistance from regional authorities. The decision spurred new sanctions from the United States and its allies, further influencing global energy dynamics and market expectations.
Analysts also note that EU sanctions are likely to contribute to gas shortages in parts of the region, amplifying concerns about energy security and the readiness of transport networks to accommodate a rapid transition to electricity-based mobility.