Oil prices are climbing again as tensions escalate overseas, and as the latest nationwide data shows, gas prices are rising dramatically. This could have a major impact on the American electric vehicle (EV) market, which has been losing momentum since federal incentives expired last year.
U.S. EV sales totaled roughly 66,000 units in January 2026, down nearly 30% year-over-year and about 20% lower than December. EVs still had their second-best year on record, as far as volume – but market share slipped from 8.1% in 2024 to about 7.8%. Several automakers have since moderated production targets in response. Electrified vehicles overall gained market share in 2025, but most of that growth came from hybrids rather than fully electric vehicles.
According to CarEdge, a 25 MPG vehicle driven 15,000 miles per year costs about $1,950 annually in fuel at $3.25 per gallon. Push that to $4.50 per gallon, and the number climbs to roughly $2,700 – a $750 annual increase. Most EV drivers, by comparison, spend somewhere between $500 and $800 per year on electricity.
“When deciding on your next vehicle, run the full ownership math,” CarEdge noted. “A lower monthly payment on a gas vehicle can look attractive until you factor in fuel costs over five years. Compare total cost of ownership, not just sticker prices. Consider EV leases. A two-to-three-year lease keeps your options open and protects you from depreciation risk. The used EV market is [also] where some of the strongest value currently exists for buyers who want to reduce fuel costs.”
Source: CarEdge
