Sky-high gas prices and the future of EV

A truth American motorists can no longer deny as summer driving season begins is simply this: Never in U.S. history has it cost so much — on a flat, not adjusted for inflation basis — to fill a gas tank.

On Friday, AAA reported the average nationwide price for a gallon of regular was $4.76, up 5 cents from the day before.

A week ago, a gallon cost $4.59, representing a 17-cent spike in seven days.

A month ago, the price was $4.20.

A year ago, a gallon could be had for $3.04.

In Missouri, gas is less expensive than in most of the U.S., but according to gasbuddy.com, all service stations in Cape Girardeau, Jackson, Scott City and Perryville are now offering petrol at more than $4 per gallon.

The reasons for the spike in pump prices have been exhaustively discussed, with the escalating cost of a barrel of oil identified as the primary culprit.

Instead of rehashing the rationale for these unprecedented circumstances, the Southeast Missourian reached out to two knowledgeable authorities to ask what today's sky-high fossil fuel prices may mean for the nascent electric vehicle (EV) market.

David Yaskewich

David Yaskewich, a faculty member in economics at Southeast Missouri State University, is chairman of SEMO's Accounting, Economics and Finance Department.

Alex McElroy

Alex McElroy is executive director of Southeast Metropolitan Planning Organization (SEMPO), a Cape Girardeau-based agency laser-focused on transportation issues. SEMPO expects to approve an electric vehicle readiness plan this September.

• In Missouri, only 0.12% of all registered vehicles in the state are fully electric. California leads the nation at 1.6%, so the percentage of Americans turning to EV remains minuscule. What could motorists do in the short-term to minimize, as much as possible, the cost of transportation?

Yaskewich: After experiencing high gasoline prices for a significant period, some may reconceptualize vacation. Here's what I mean: Instead of taking two summer trips, try a two-for-one approach and take a single road-trip vacation instead. There is also a more everyday option, which is a much more impactful decision: moving closer to where you work. Turning to EV is another possible choice but considering that transition from a gas-powered vehicle can be a daunting prospect.

McElroy: Soaring gas prices weren't the impetus for launching our EV readiness plan initiative. The (Biden) administration has shown a shift in prioritization for EV and we want to make sure our region is prepared, (so) we got serious in 2021 about developing a plan. It's pretty clear, though, there are barriers to transitioning to an electric vehicle dependent on the availability of charging stations. The upfront cost of an EV is a significant barrier.

• What is the anxiety associated with a motorist moving toward owning an electric vehicle?

Yaskewich: As an EV motorist, if I were to take a trip outside of Cape Girardeau County, will there be charging stations available for me? I don't know. How well do EVs perform in winter? Engineers probably are quite knowledgeable about this but there may be uncertainty for the average consumer.

McElroy: It's always hard to think past the short-term but something to consider is, electric vehicles have a lot fewer parts and require considerably less maintenance. Over time, there is a definitely a cost savings with EV but getting over the hump to buying one is a big challenge.

Yaskewich: When I read about General Motors and Ford making significant investments in research and development on electric vehicles, it's clear they're banking on the future success of EV. Today, EVs are a small part of the market, yes, but I suspect more and more (consumers) will gradually make the switch to electric.

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