On the Dash:
- EV rentals are surging at Hertz and Turo as gas prices top $4 a gallon nationwide.
- The conflict in Iran has pushed U.S. gas prices up more than a third since February.
- Despite the rise in EV rentals, new EV sales are down following the expiration of the federal tax credit.
Drivers are choosing to rent electric vehicles at sharply higher rates as gasoline prices surge past $4 a gallon, according to a Reuters report.
Requests for electric vehicles at Hertz rose by nearly 25% in March compared with February for longer-term rentals. Hertz noted that the strongest rise in EV demand was in West Coast markets, where gas prices are highest. The average price of a gallon of regular gasoline in California was around $5.80 in March 2026 according to AAA.
Peer-to-peer car rental company Turo also reported an uptick in EV rentals. Turo reports that EV bookings increased by 11% in the last three weeks of March compared to the previous three-week period. Turo saw EV bookings rise 47% on March 31st, as US gas prices topped $4 a gallon for the first time since 2022.
The conflict in Iran has disrupted the Strait of Hormuz, a key shipping channel for about 20% of the world’s oil supply. Since fighting began in February, U.S. gas prices have climbed more than a third, according to the U.S. Energy Information Administration.
AAA reports that average U.S. gas prices remain above $4 a gallon at $4.03 as of Apr. 23, 2026. That’s up 86 cents per gallon compared to the same time last year.
As EV rentals rose, new EV sales fell 25% in March compared to the same time last year, according to Kelly Blue Book. The drop comes after the $7,500 federal tax credit expired. Analysts say fuel spikes don’t typically reshape long-term car buying habits, but the recent spike in gas prices is unusually severe.
