EV Rental Demand Soars as Gas Prices Surge Past $4, But Sales Still Lag

Americans are increasingly turning to electric vehicles (EVs) for rentals as gasoline prices climb above $4 per gallon, even as new EV sales continue to lag behind. Rental firms report a surge in demand for EVs, offering a temporary solution for drivers facing high fuel costs.

Hertz Sees 25% Spike in EV Reservations

Hertz, which recently de-fleeted 30,000 EVs due to high repair costs, experienced a nearly 25% increase in EV reservation requests in March compared to February, according to Reuters. The strongest demand came from the West Coast, where fuel prices are traditionally higher and drivers are more open to alternative vehicles.

Cheaper Charging Drives Demand

For drivers covering long distances, including rideshare operators, the cost savings of charging an EV versus filling up a gas-powered vehicle are significant. With access to low-cost electricity rates, fully charging an EV can cost as little as $10–$20, compared to $60 or more for a full tank of gas.

Turo Reports 47% Jump in EV Bookings

The peer-to-peer rental platform Turo also saw a surge in EV bookings. During the final three weeks of March, EV reservations rose 11% compared to the previous three-week period. On March 31, the day U.S. gas prices topped $4 for the first time since 2022, EV reservations were up 47% compared to the same date last year.

Gas Prices Surge Due to Global Supply Concerns

The spike in fuel costs follows disruptions around the Strait of Hormuz, a critical shipping route for global oil supplies. Concerns over oil supply have pushed U.S. pump prices up by more than a third since late February.

Current U.S. Fuel Prices (as of latest data)

• Regular: $4.09 (up from $3.17 a year ago)
• Mid-Grade: $4.59
• Premium: $4.96
• Diesel: $5.47 (up from $3.56 last April)
• E85: $3.21

In California, regular gas now averages $5.85 per gallon, while diesel costs a staggering $7.49. These national and regional price hikes are driving drivers to consider alternatives, even if only temporarily.

U.S. EV Sales Still Decline Despite Rental Surge

While rental demand for EVs is rising, new EV sales in the U.S. fell 25% in March compared to the previous year. The loss of the federal $7,500 tax credit last autumn continues to impact purchase decisions. However, analysts suggest that if gas prices remain high, EV sales could see a boost in the coming months.

"When gas jumps that quickly, people don’t always change what they buy. That takes longer. But they clearly do change what they rent, which is a less permanent financial commitment."

Europe Sees Rapid EV Adoption Amid High Fuel Costs

In contrast, Europe is experiencing a surge in EV sales due to high fuel prices. EV sales in the region rose 33.5% in Q1 and accelerated 51% in March, driven by the conflict in Iran and its impact on global oil markets.