Governments Are Going To Lose $92 Billion In Fuel Taxes Thanks To Electric Cars. The Financial Times reports:
Under the International Energy Agency’s most ambitious scenario, in which 30 per cent of new car and truck sales are electric by 2030, governments are set to forgo $92bn in revenues from duties on road fuels.
The figure, in the IEA’s annual report on electric vehicles, implies electricity displacing almost 4.8m barrels a day of petrol and diesel, even though this is only 5 per cent of current global oil demand, meaning the fossil fuel will still retain its role as the global transportation fuel for years to come. Under a more conservative outlook that takes into account current government policies, lost revenue from fuel taxes is expected to reach $47bn in 2030, even as electricity displaces just 2.6m b/d of petrol and diesel.