AAA says the national average for regular gasoline reached $3.98 a gallon on March 26, up $1 from a month earlier. Cox Automotive says higher fuel costs can increase consideration of electric vehicles among shoppers weighing total ownership costs.
Rising gasoline prices in the United States are drawing renewed attention to electric vehicles, according to recent data from AAA and Cox Automotive. The latest AAA fuel-price update showed the national average for regular gasoline at $3.98 a gallon on March 26, while Cox Automotive said rising gasoline prices may increase consideration for EVs among buyers looking at total cost of ownership.
Key Insights
- AAA said the national average for regular gasoline climbed from $2.98 on February 26 to $3.98 on March 26, 2026.
- Reuters reported that Cox Automotive research found most U.S. consumers would consider switching to an EV or hybrid if gasoline prices reached $6 per gallon.
- Reuters also reported that EVs accounted for 7.7% of new-car sales last year, with demand cooling after the federal $7,500 EV tax break ended.
- Cox Automotive’s February EV Market Monitor said rising gasoline prices may increase EV consideration among shoppers weighing total cost of ownership.
- Cox Automotive said EV sales were forecast to be 28% lower year over year in the first quarter of 2026, despite rapidly increasing fuel prices.
- Reuters reported that U.S. used EV sales reached 31,503 units in January, up about 21% from a year earlier.
Gas Prices Continue to Climb
AAA’s March updates show a steady run-up in gasoline prices through the month. The organization said the national average for regular gasoline rose nearly 27 cents in the week ending March 5 to $3.25, climbed nearly 35 cents the following week, increased another 28 cents by March 19, and then rose to $3.98 on March 26. AAA said the March 26 average was 10 cents higher than the previous week and $1 higher than a month earlier.
The AAA page also noted that the March 26 figure came after a series of weekly increases and placed the national average well above the level seen a month earlier. The organization’s March archive shows the pace of change in pump prices over a short period, which has made fuel costs a more visible part of the car-buying discussion.
Cox Automotive Sees Higher Fuel Prices Affecting EV Consideration
Cox Automotive’s February EV Market Monitor said rising gasoline prices may increase consideration for EVs among shoppers weighing total cost of ownership. That note came from Stephanie Valdez Streaty, Cox Automotive’s director of industry insights, in the company’s monthly EV report.
Reuters reported separately that Cox Automotive research found most U.S. consumers would consider switching to an EV or hybrid if gasoline prices reached $6 per gallon. Reuters added that industry experts said a major move to EVs was unlikely unless fuel prices climbed much further, and that EV demand had cooled after the federal $7,500 tax break for buyers was eliminated.
Cox Automotive’s March sales forecast said the EV market remained softer in early 2026. The company said EV sales were forecast to be lower by 28% year over year in the first quarter, even as gasoline prices were rising, and that hybrid sales continued to show solid growth. Cox also said the loss of federal tax incentives continued to negatively affect the EV market.
Used EVs Show Stronger Demand
The used EV market has posted stronger recent sales than the new-EV segment. Reuters reported on March 11 that used EV sales in the United States reached 31,503 units in January, about 21% higher than a year earlier, according to Cox Automotive. Reuters also reported that used EV sales totaled 378,140 vehicles in 2025, roughly 35% higher than the prior year, according to CarEdge.
Reuters said the gap between used EV prices and comparable gasoline vehicles narrowed in January, with the premium over similar gasoline cars falling to $1,376 from $2,591 in December, according to Cox Automotive. The report said lower prices have made used EVs more accessible to a wider set of buyers.
New EV Sales Remain Under Pressure
Even with higher gasoline prices, the broader new-EV market has been weaker in early 2026. Reuters reported that EVs accounted for 7.7% of new-car sales last year. The same Reuters report said sales had cooled after the federal EV tax break was removed, showing that fuel prices are only one part of the current market picture.
Cox Automotive’s March forecast also said the overall new-vehicle market was moving at a slower pace in early 2026, with consumer demand shaped by higher vehicle prices, ongoing inflationary pressures, and elevated interest rates. The company said those conditions were part of the backdrop as it left its full-year 2026 sales outlook unchanged.
Current Status
AAA said the U.S. national average for regular gasoline stood at $3.98 a gallon, up sharply from a month earlier. Recent reporting from Cox Automotive and Reuters shows that higher fuel prices are being discussed alongside EV consideration, hybrid demand, and a stronger used-EV market, while new-EV sales remain affected by the end of federal tax incentives.
