Energy prices are surging around the world as the Iran war spills over into its second month and Canadians are feeling the pain at the pump.
The blow to their wallets is causing an increasing number of Canadians to look at electric vehicles as an alternative, some experts say.
Gas prices rose on Wednesday, with the average price at the pumps in Canada around $1.77 per litre, according to CAA, rising 47 cents compared to the same time a month ago.
According to rate comparison website Rates.ca, the number of Canadians searching for a quote on car insurance for an EV was 40 per cent higher last month compared to March of last year.
“We’re starting to see interest come back,” says Daniel Ivans, Rates.ca insurance expert.
“Fuel prices and rebates are helping bring EVs back into the conversation and lower-cost models are making them feel more attainable,” Ivans said.
According to pre-owned car platform Clutch, searches on their platform for electric vehicles have grown by more than half (54 per cent) since the start of the war.
“We’re seeing the relationship to rising gas prices and interest in EVs clearly in the data,” said Clutch CEO Dan Park.
“The interest is real and accelerating. On Clutch.ca, EV search activity is growing at five times the rate of overall vehicle shopping,” he added.
The pressure from the oil market is driving Canadians to “actively explore” EVs as an option, Park said.
“People are researching and comparing options more,” he said.
The interest is being driven by a “convergence of factors,” including rising fuel prices, the federal government’s EV rebate program, and a “and broader awareness that the economics of EV ownership are shifting,” he added.
Affordability remains top of mind for prospective EV buyers. In a Leger survey conducted for Rates.ca, more than half of respondents (56 per cent) said they would consider buying a Chinese EV because of cost concerns.
According to the survey, 59 per cent of those interested in or who are unsure of purchasing an EV cited the purchase price as their primary concern.
“Affordability remains a major barrier preventing that interest from fully translating into purchases,” Park said.
Canadians should also consider comparing car insurance rates when buying an EV, Ivans said.
“Premiums can vary widely depending on the vehicle’s value, repair costs, theft risk and location, so anyone buying their first EV should compare quotes early and review coverage carefully,” he said.
© 2026 Global News, a division of Corus Entertainment Inc.
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