International Energy Agency says the Gasoline Thirst is Unlikely to Return

According to the International Energy Agency (IEA) forecast, the gasoline thirst in the World is not likely to return to pre-pandemic levels. The forecast also showed a peak for the fuel that has powered personal transportation for more than a century. After its closely followed five-year forecast, the Paris-based energy watchdog said an accelerating global shift could be seen.

The vehicle industry is shifting towards electric vehicles with increased fuel efficiency among the gasoline-powered fleets. It will also outweigh the demand growth from developing countries. The International Energy Agency (IEA) predicted on Wednesday that gasoline would never fully recover. Fatih Birol, IEA Executive Director, said, “We do not think gasoline consumption will come back to 2019 levels again.”

BMW became the latest automaker to announce a significant shift to electric vehicles. The forecast has followed as many automakers have pivoted to boost their EV fleets. Companies have been skeptical about whether car buyers would embrace fully electric models for years now. General Motors Co. said that it would stop selling gas-powered vehicles by 2035. By 2030, even Volvo Cars of Sweden has said it would be all-electric.

Worldwide, by 2026, some 60 million electric vehicles will be on the roads. The study by International Energy Agency said that the 7.2 million in 2019 would surely increase in the upcoming years. The EV trends are being used as a basis for forecasting the signal for gasoline and crude oil demand. Hefty incentives are being issued to companies in developed countries who shift toward electric vehicles.