NEW YORK – Global gasoline demand, once unsatisfactory, is unlikely to return to pre-pandemic levels, according to an International Energy Agency report released on Wednesday.
Gasoline consumption declined during the pandemic, when cities closed and many people started working from home, a trend that will almost certainly continue when the Covid-19 crisis is eased. Many governments have also promoted the use of low-carbon alternatives.
But demand for crude oil 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 until 2023, according to the IEA.
The likelihood of a full petrol recovery is due to increased demand in developing countries by offsetting consumers in electric vehicles, higher efficiency of new models and increased work from home, reducing travel, the agency said.
Meanwhile, gasoline prices have risen. Americans pay 14% more for every gallon (3.79 liters) of fuel than in February and 29% more than a year ago, according to AAA, a car service organization.
This increase is due in part to Texas’ winter storms, which brought more refineries to a standstill. The price has also been boosted by rising oil prices, due to expectations of an economic recovery, as more people are vaccinated against the virus.