Covid-19 effect ‘will crush US gasoline demand’

Report says the impact of social distancing is already being felt on American fuel demand and EV sales

Social distancing measures in the US fight against coronavirus could lead to a gasoline demand drop greater than the 2008 recession.

Analytics firm IHS Markit says mobility patterns have been ‘significantly’ impacted and curbed – resulting in a decline of as much as 4.1 million gasoline barrels per day (MMb/d) during the Covid-19 response period so far.

Vice-President of IHS Markit Jim Burkhard, said: “The magnitude of gasoline demand decline will be much greater than the impact of the 2008 recession—and could be further protracted depending on how effective social distancing measures are at controlling the spread of the covid-19 virus.”

The report further predicted a ‘stalling of demand’ for the global auto industry. And electric vehicles (EV) sales are also expected to ‘stagnate’ up to 2021.

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