More drivers turn to EV rentals as gas prices top $4

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. ​

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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.