Wood Mackenzie warns high oil prices may speed EV adoption globally
By Eve
Wood Mackenzie has published analysis suggesting that elevated oil prices could accelerate the shift to electric vehicles on a global scale. The research highlights the economic pressure higher fuel costs place on consumers and fleet operators, potentially tipping purchasing decisions towards EVs. The findings come amid ongoing volatility in global energy markets.
Why it matters
Fleet operators and charge point operators may see faster demand growth if fuel price differentials widen, shortening payback periods for depot and destination charging infrastructure. Procurement teams should monitor oil market trends as a leading indicator for EV uptake and charging capacity planning.
Source
- Original title
- “High oil prices could accelerate EV adoption”
- Published
- 20 March 2026
- Updated
- 16 July 2026
In this story
- Topic
- Policy & Market
- Place
- Global
Related news
Wood Mackenzie finds four hour battery storage now cheaper than gas peaking in all 43 modelled markets
Wood Mackenzie's global levelised cost of electricity report shows four hour battery storage has become less expensive than open cycle gas turbines across all 43 markets where both technologies were modelled. In the Middle East and Africa, four hour storage is forecast to fall a further 33% to US$80/MWh by 2035, while China remains the global storage cost benchmark at more than 55% below the rest of Asia Pacific average. Single axis tracker solar is now the lowest cost new build technology in 43 of 48 modelled markets, with solar LCOE in Saudi Arabia and the UAE on track to fall below US$20/MWh by 2033.
Why it matters
The cost crossover between battery storage and gas peaking plants reshapes the business case for grid infrastructure and charging site energy management, as cheaper storage enables CPOs to buffer demand peaks and reduce grid connection costs. Falling solar and storage costs in key EV growth markets like China and the Middle East improve the economics of renewable powered charging networks.
UK cuts home charging VAT to 0% but leaves public charging at 20%, widening driveway divide
From 1 October, domestic electricity VAT in the UK dropped to 0%, cutting home EV charging costs by an estimated £40 per year for drivers with off street parking. Public charging remains subject to 20% VAT, prompting char.gy CEO John Lewis to call the disparity unfair and urge Labour to reduce public charging costs. The policy change, linked to Andy Burnham's initiatives, has been criticised for widening the so called driveway divide between EV owners with and without private parking.
Why it matters
The VAT gap between home and public charging may slow uptake among drivers reliant on public infrastructure, pressuring charge point operators to absorb cost differences or risk losing customers. Policymakers and CPOs face renewed calls to level the playing field, which could influence future subsidy design and site economics for on street and destination charging.
UK allows pavement cable gullies for home EV charging from 21 October but excludes conservation areas
From 21 October, homeowners and renters in England can install cross pavement cable solutions, such as gullies, to connect home chargers to cars parked on street without traditional planning permission, enabling them to access 0% VAT domestic electricity rates instead of the 20% rate on public chargers. The Prime Minister has cut domestic electricity VAT from 5% to 0%, saving driveway owners up to £40 per year. However, residents in around 10,000 conservation areas, affecting as many as 3.5 million people, will still require full planning permission and cannot use the simplified process.
Why it matters
The pavement gully rule removes a major barrier for home charging installations in streets without driveways, potentially expanding the addressable market for residential charge point operators. The conservation area exclusion leaves a significant segment of urban residents dependent on costlier public charging infrastructure, sustaining demand for on street and destination charging networks.