NEW YORK (AP) – World demand for gas, previously insatiable, is unlikely to recover to pre-pandemic levels, according to a report by the International Energy Agency on Wednesday.
Gasoline usage increased during the pandemic as cities closed and many people started working from home, a trend that is likely to continue as the COVID-19 crisis subsides. Many governments have also been pushing for low-carbon alternatives.
Demand for oil, in turn, is expected to continue to rise as developing countries with growing populations use more fuel. But it is not expected to return to pre-pandemic levels by 2023, according to the Paris-based intergovernmental agency.
Demand for gasoline is unlikely to fully return because rising demand in the developing world will be offset by consumers switching to electric vehicles, manufacturers improving fuel efficiency and businesses by increasing telecommuting while decreasing travel, the report said.
Meanwhile, gasoline prices have gone up. Americans are paying 14% more for a gallon of regular soda than in February and 29% more than a year ago, according to AAA.
This spike was caused in part by storms in Texas that shut down the power of millions of residents and left several oil refineries down. The price of gasoline was also driven by oil prices, which increased along with expectations of economic recovery with the distribution of vaccines against coronavirus.