24 January | Macroeconomics

Gasoline and diesel sales in the U.K. declined last year

The perspective of fuel demand in the U.K. is falling due to increased sales of electric cars.

National automobile manufacturers reported their overall sales in 2022 were the worst in thirty years. However, this trend was not supported by electric cars, as their sales increased by 40% compared to the previous year. Data from the Society of Automobile Manufacturers and Retailers show that previously their share of the national new automobile market was 12%, but now it is 17%.

Battery-powered cars have become very popular. Their sales have jumped enormously and taken the second place, only behind gasoline and ahead of diesel sales.

In 2021 and 2020, all sales indicators were distorted by the impact of the virus, which was an exception to the major trend. Nevertheless, according to government data and estimates since 1990 through the last September, average monthly sales of gasoline were the lowest.

The International Energy Agency in Paris estimated that growth in global oil consumption this year could be reduced by about 870,000 barrels per day, which is just a little bit less than 1% of global demand. Improved fuel efficiency and increased sales of electric vehicles could contribute to this.

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