Spiralling fuel prices could drive demand towards EVs: Ibec CEO Danny McCoy
Spiralling fuel prices could end up driving demand towards electric vehicles – but governments need to incentivise this shift.
That’s according to Ibec chief executive Danny McCoy, who warns that there is little chance of a sharp reversal in climbing fuel prices anytime soon.
In a wide-ranging interview appearing exclusively in the Ireland’s Forecourt & Convenience Retailer yearbook, he said many companies are now committing to ambitious carbon neutral targets on the back of COP26 – but these will be hard to achieve while keeping prices where consumers expect to see them.
Government plans to end new petrol and diesel engine car sales by 2030 may bring an upside to the rising fuel prices.
“This will drive demand towards Electric Vehicles, but the demand might be limited by adequate networks of charging points to encourage EV use,” Mr McCoy said.
“Governments have a role here to further incentivise this shift.”
And he said companies face an immense challenge to meet carbon reduction targets whilst growing their activity.
“The need to price environmental assets appropriately to reduce the climatic damage will rise energy costs in the short term,” he said.
“Coupled with the expansion of the global money supply these price rises are driving inflation rates to over 30-year highs.”
Watch out for the full interview in the forthcoming Ireland’s Forecourt & Convenience Retailer yearbook.