The Potential Long-Term Effects of the Fuel Crisis on the Auto Industry
Even if the precise causes of these issues haven’t always been the same, there are very compelling reasons why it sometimes seems like we’re talking about fuel shortages more than we ever have.
Take the UK gasoline supply problem, which made headlines in the fall, as an example. Following BP’s announcement that it would find it difficult to complete some deliveries due to a lack of tanker drivers, many drivers began swarming the forecourts in an attempt to panic buy fuel, which led to actual shortages and a national dialogue about possible causes like the COVID-19 pandemic and Brexit.
Ultimately, that specific “crisis” turned out to be more of a minor annoyance for a lot of people since the government took action by easing regulations governing oil business competitiveness and assigning army drivers to assist in maintaining fuel supplies.
However, as spring rolled around, the “fuel crisis” was once again a topic of conversation in the UK. This time, the impact of Russia’s war against Ukraine on fuel supplies and the disruptive acts of protestors from the Just Stop Oil campaign organization were the main points of interest.
What effects, then, can these problems have on the automotive industry?
The topic of how the aforementioned crises might impact the automotive industry naturally calls for a “big picture” perspective, especially in light of the numerous possible contributing variables. However, it would be naive to assume that shortages of fuel or rising costs won’t have any impact whatsoever on the way we purchase and utilize automobiles in the future.
So far, one of the possibly more evident effects of these crises is that more drivers are thinking about the advantages of electric cars (EVs). As The Guardian noted in the fall of last year, there was an increase in questions concerning these kinds of cars due to problems that were occurring at gas stations at the time.
It’s also important to note that the UK has been seeing a longer-term trend toward the purchase of electric vehicles and that this tendency is accelerating; in March 2022, Britons bought more electric vehicles than they did in the whole year 2019.
Therefore, even though a single fuel crisis might not have a significant impact overall, it appears plausible to assume that a number of them will eventually encourage more drivers to consider purchasing electric vehicles.
However, another possible effect of the fuel-related issues could be a greater number of UK citizens opting not to purchase a new car altogether, or at least not as frequently as they may have in the past.
According to reports, UK automobile production reached its lowest point since 1956, while new car registrations decreased by 14% in March 2022 compared to the same month the previous year. However, a lot of these patterns can be linked to the wider disruption caused by the recent coronavirus outbreak and its aftereffects, such as a scarcity of semiconductor chips.
What does all of this potentially mean for the way you drive in the future?
Accelerated adoption of electric vehicles, cautious and fuel-efficient driving for those of us who choose to continue using gasoline and diesel cars for a longer period of time, and much more… Although the future of the automobile industry is difficult to forecast, one thing is certain: we are living in a period of rapid and irreversible change.
Furthermore, you may be even more appreciative of the chance to own the ideal car at the ideal price in light of the ongoing cost of living issue. So why not use Auto Finance Genie right now to find out what fantastic auto finance deals are available in Manchester and throughout the UK, as well as in Newcastle, Leicester, Essex, and other locations?
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