Crude oil constitutes 71% of gasoline prices. Therefore, if you drive something that needs petrol/ gas, whether it’s a Ferrari or a Ford, the energy market is an important factor as it can affect your budget.
However, if you choose electric vehicle and prefer to drive Prius, or maybe Tesla, gasoline prices are no longer a cause for concern. Still, there is another issue to consider: electricity prices.
Electricity consumption
It’s difficult to say exactly how much it costs to charge an EV battery, due to several factors:
- The price for Kilowatt per hour (kWh) depends strongly on supplier and region
- The consumption of a particular vehicle depends on several factors: battery capacity, driving behaviour, etc.
However, making some rough estimates, the cost of electricity for a hundred kilometers is much lower than the cost of fuel, feeding an internal combustion engine for the same distance.
Let’s take a look at the following example. Imagine that you drive 15,000 km a year. How much will it cost you to keep your car moving?
With a petrol vehicle your average fuel consumption is, let’s say, 5L/100 km. Your electric car needs 10 kWh/100 km.
The average price for petrol in Europe is 1.5 €/L, whereas an e-car will cost you 0,25 €/kWh. In this case, driving a petrol car you’ll have to pay €1,125 annually, while using an electric vehicle will cost you only €375.
Energy commodities
EVs still run on electricity, which in many areas is still produced by burning fossil fuels- so even an EV driver should be interested in live commodity prices.
Choosing a car that will be ‘just right’ for your purposes takes a significant amount of time and consideration. While you do that, you can open another chapter of your life and start trading the energy commodities market, to better understand what influences the world’s car manufacturing business and fuel prices. Not only that but you can save money by making the best decision based on a cost/benefit analysis.
If you don’t want to deal with trading real assets, you have another option: CFDs. They give you the opportunity to speculate on the price without having to hold an asset. CFD trading platforms offer you outstanding flexibility, on a huge variety of natural resources.
Modern trading apps, like Capital.com, represent a new generation of user-friendly, and trusted CFD trading platforms that suit everyone, whether you are an experienced trader or a newbie. The essence of trading Contracts for Difference is that you speculate on the market’s price movements, without owning the underlying assets, giving you increased liquidity in your trading.
Another significant advantage of CFDs is that you don’t have to invest a huge sum of money to make a trade because you can trade with leverage provided by your broker. Learn more about energy commodities and start trading them with CFDs at Capital.com.
This post is supported by Capital.com; image by Gab Pili/Unsplash