Not everyone is upset about high gas prices.
For 55-year-old Steve Wojtanek, owner of a Chevrolet Volt hybrid that is getting 123 miles to the gallon, $4 a gallon is the "icing on the cake."
The Florida resident and commercial actor bought his plug-in vehicle four months ago because he wanted to reduce his dependence on foreign oil.
"I just don't want to send my money out of the United States if I can help it," he said.
Each charge costs him about 90 cents and yields more than 40 miles on pure battery power. In comparison, his Lexus costs about $6 to go the same distance.
"I'm very happy. The timing couldn't have been better," Wojtanek said.
Rising gasoline prices could tip the economic equation in favor of an emerging electric vehicle market. But whether those prices remain high long enough to drive consumers to the technology in large numbers remains to be seen. Adoption of plug-ins could also be delayed as makers of traditional vehicles strive to meet higher fuel-efficiency standards. Current standards call for 24.1 miles per gallon for cars and light trucks combined and are mandated to rise to 30 mpg by 2016.
Due to taxes, Chicago drivers pay more for gas than in any other major metropolitan area in the continental U.S. The average price for a gallon of gas was $4.32 a gallon Tuesday, according to price tracker GasBuddy.com. Some analysts predict $5 per gallon in Chicago before the end of summer.
At $5 a gallon, consumers who drive 12,000 miles a year could save on average $2,257 at Commonwealth Edison's off-peak electric rates by switching to a pure electric vehicle, according to an analysis released Wednesday by the Environmental Law and Policy Center.
"To the extent that people aren't spending money at the pump, what economists say is that's more money in your pocket, and you're going to spend that on food and money and entertainment and other goods and services," said Howard Learner, president of the Midwest environmental advocacy organization.
The analysis found that if the overall fuel efficiency of Illinois passenger vehicles jumped from the current average of 21.7 miles per gallon to 30 miles per gallon, it would save $6.75 billion for Illinois and create about 72,000 jobs in the state, because more money would flow to Illinois businesses that would otherwise leave the state's economy.
In the short term, oil prices are being driven up by worries about political instability in the Middle East, lost supply from Libya and a longer-than-anticipated nuclear crisis in Japan. Longer-term pressures include increased demand for gasoline from India and China.
While 78 percent of consumers said they would consider purchasing an electric vehicle if fuel prices reached $5 per gallon, according to a recent Deloitte study, their expectations exceed what the auto industry is delivering for vehicle price, range and charging times.
"Their greenness seems to be challenged by their pocketbooks, and what the data is showing us is that, at least right now, the pocketbook wins," said Craig Giffi, vice chairman and U.S. automotive practice leader for Deloitte.
Despite widespread interest in electric vehicles brought on by higher gas prices, Giffi predicted that only 4 percent of the population would buy one. The report found that 68 percent of consumers would be less likely to consider an electric vehicle if they could find a traditional vehicle that yielded 50 miles per gallon.
Other factors are working in the electric vehicle industry's favor, said Deborah Allen Hewitt, a clinical professor of economics and finance at The College of William & Mary Mason School of Business who studies the auto and gasoline industries.
The recession made people hold on to their old cars longer, Hewitt said, so more people are in the market for a new car. At the same time, $4-a-gallon gas, which seems to be the tipping point for changing consumer behavior, has come at a time when wider rollouts of electric vehicles are expected, she said.
"The key point is whether (gas prices) will stay high long enough to have a significant impact," she said.
Juan Flores, automotive market analyst for Kelley Blue Book, said it is too early to conclude that higher fuel prices for six months will be the panacea for electric vehicle demand. Even with gas prices at $4 per gallon, Flores said, it would take an electric vehicle owner more than 10 years to offset the additional cost of the vehicle over a comparable gas-powered vehicle.
But if consumers are considering a plug-in, for environmental or technology reasons or to reduce dependency on foreign oil, high gas prices could push them into making a purchase. Data from Yahoo shows that spikes in searches for gas prices are closely followed by spikes in searches for hybrid and electric vehicles.
"The consumer that purchases an electric vehicle today is making this purchase not so much for financial reasons," Flores said.
jwernau@tribune.com
Twitter @littlewern
(Credit: Gartner)