Fuel crisis prompts 21% surge in EV sales in Switzerland

The Association of Independent Car Dealers (VFAS) has reported an almost 22 percent increase in electric car sales in March as a result of high fuel prices in Switzerland.

Switzerland sees electric car sales surge in March

The car market in Switzerland felt the effects of the US-Israeli war with Iran in March. The Association of Independent Car Dealers (VFAS) has reported that electric vehicle (EV) sales increased by 21,7 percent in March compared to the same time last year, reports Watson.

Plug-in hybrid vehicle sales also increased by 38,1 percent in March. The organisation attributes the surge in electric car sales to rising diesel and petrol prices. In comparison, new car registrations rose by 7,2 percent to 23.010 vehicles. 

Swiss diesel prices rose 22 percent in March

Due to the Strait of Hormuz closure, drivers have been dealing with increasing fuel prices. The average price of unleaded 95 petrol rose by 11 percent from 1,64 Swiss francs per litre in February to 1,82 francs by the end of March. Diesel prices increased by 22 percent, rising from 1,75 to 2,13 francs within the same period, according to Touring Club Switzerland (TCS) analysis.

While the increases are significant, petrol and diesel prices in Switzerland have not yet reached the level seen in March 2022, when Russia's full-scale invasion of Ukraine led to a similar surge. Back then, petrol prices reached 2,40 Swiss francs per litre and diesel 2,65 francs a litre.

The price of fuel in Switzerland is linked closely to global crude oil prices. The US, Israel and Iran have agreed to a two-week ceasefire, which could see the Strait of Hormuz reopen. As a result of the ceasefire, on Wednesday, April 8, oil prices dropped 14 percent to 94 US dollars a barrel, according to Sky News.