Demand Destruction of Gasoline

Basic economics revolves around supply and demand and the relationship between the two.  The concept is very simple...  if the supply increases and the demand stays the same, prices drop.  If the demand increases and the supply stays the same, the price increases.  This second situation is what we currently have regarding gasoline.  Now, if the supply of gasoline continues to be restricted and the price continues to increase, it will reach a point where the actual demand for gasoline will begin to decrease.  This demand reduction could be temporary or could be permanent.

As far as gasoline is concerned, the Democratic Party wants it to be permanent so that Americans completely stop their use of fossil fuels...

Unfortunately, in November, we will experience the mid-term elections, and more than likely, the Republican Party will win so many State elections that the control of the House and Senate will fall into their hands.

If the Republicans gain back control of the House and Senate, then they will immediately pass legislation that returns to the use of fossil fuels...  and gasoline prices will again begin the reduce and may return to the price they were before all this nonsense began.

However, the pain of a year of high gasoline prices will be sufficient to cause many Americans to begin the gradual process of switching from gasoline vehicles to electric vehicles...  and, when this happens, you will have sustainable demand destruction of gasoline.

Before all of this happened...  that is to say...  before Biden was elected our President, it was being predicted that EV would replace gasoline vehicles by 2030...  and, this prediction is still valid and our present gasoline situation could accelerate this transition.

But regardless, 2030 is only about 8.5 years away which is less than a decade and will pass before you realize it...  especially if you are over 40 years of age.