U.S. Gasoline Hits $3.88 as Trump Says Iran Ceasefire Is Over

Q: With gas and electricity prices rising, is the financial advantage of driving an EV shrinking?

For most drivers, no—the financial edge of an EV is shrinking only at the margins, not disappearing. At current national averages, gasoline at about $3.84 to $3.88 a gallon still leaves a typical 30-mpg gas car costing roughly 13 cents a mile for fuel. An EV charged at home, where electricity averages around 18 cents per kWh, usually costs about 4 to 6 cents a mile. That remains a large gap in favor of EVs. The pressure point is public charging. AAA says public charging averages 42 cents per kWh nationally, and fast charging can run higher. At those rates, an EV can cost roughly 11 to 15 cents a mile, which is close to—or in some cases above—the fuel cost of an efficient gasoline car. So for drivers who rely heavily on public fast chargers, the savings are clearly narrower than they are for home chargers. Even then, fuel is only part of the math. EVs still generally have lower maintenance costs because they avoid oil changes, many fluid services, and have fewer moving parts. Several estimates in the broader market still put annual EV fuel savings near $1,400 for drivers who mostly charge at home, with additional maintenance savings over time. The bigger picture is that EV economics are becoming more dependent on charging habits. If you can charge at home, the financial advantage remains strong. If you depend on public fast charging, especially in high-price states, the advantage can shrink sharply and may sometimes vanish on energy costs alone.

3 articles · Updated · CBS New York · Jul 10

$3.88 a gallon became the U.S. national average on Friday, up from $3.84 a week earlier and reversing a brief slide to $3.80 on July 5.
Trump's declaration that the U.S.-Iran ceasefire was "over" revived fears of supply disruption through the Strait of Hormuz, which carries about 20% of global energy flows.
34 ships crossed the strait on Thursday, the lowest daily count since June 28, while Iran-linked and sanctioned vessels still made up roughly one-third of traffic on July 9, S&P Global data showed.
Oil drives 51% of pump prices, and analysts said tighter global fuel markets are also being reinforced by Russian refinery outages, Moscow's diesel export ban, summer driving demand and costlier summer-blend gasoline.