EIA:Hybrids Gain Traction, Eroding U.S. Fossil Fuel Demand


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- U.S. sales of hybrid cars are eating into the electric 
vehicle (EV) market as consumers prioritize fuel choice, the Energy Information 
Administration (EIA) said in an analysis published Monday (2/9).

   Hybrids captured 22% of the light-duty vehicle market in 2025 as sales of 
battery-powered cars alone more than halved from 12% in September to below 6% 
between October and December after the expiry of federal tax credits.

   Consumers' fuel choice is significant as the EIA noted in August that the 
2024 record of 9.0 billion miles per day in vehicle miles traveled did not 
translate to a pickup in gasoline demand -- which remained flat from 2023 
levels. The decoupling of driving distance from fuel use is a direct result of 
consumers choosing hybrid and electric models to avoid being tied to a single 
fuel type.

   Consumption of gasoline aside, demand for diesel also fell in 2024, to 3.8 
million bpd from 3.92 million a year earlier, EIA data showed.

   In Monday's analysis, the agency underscored another development -- since 
battery-powered vehicles and plug-in hybrids consume electricity from isolated 
power sources, such as independent charging stations at highway stops, they can 
show lower power consumption at the grid level.

   Hybrids, particularly, "do not have plugs, so they don't directly affect 
grid-delivered electricity demand", the EIA noted.

    




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