Rising gasoline costs tied to Middle Eastern conflicts are pushing American drivers toward electric vehicle rentals, creating new trends in the car rental industry nationwide.
Hertz has witnessed electric vehicle reservation requests climb nearly 25% in March versus February, particularly among drivers who rent vehicles for ride-sharing services like Uber and Lyft over extended periods. According to Doria Holbrook, executive vice president of Hertz’s mobility division, the West Coast shows the strongest growth in electric rental demand, coinciding with that region’s traditionally higher fuel costs.
Peer-to-peer rental platform Turo, which operates similarly to Airbnb but for vehicles, recorded an 11% jump in electric vehicle bookings during March’s final three weeks compared to the previous three-week span. When gas prices crossed the $4 per gallon threshold on March 31 for the first time since 2022, Turo’s electric vehicle reservations spiked 47% higher than the same date in 2025.
The Iran conflict has created shipping disruptions in the Strait of Hormuz off Iran’s coastline, a critical waterway handling roughly 20% of global oil and liquefied natural gas transport. Since the war’s February 28 start, average U.S. gasoline prices have climbed more than one-third to reach $4.02 per gallon, data from the U.S. Energy Information Administration shows.
While fuel price increases typically don’t trigger immediate changes in vehicle purchasing patterns, industry analysts and dealers note this price shock’s severity is already prompting consumers to explore alternatives. European markets demonstrate this trend dramatically, with electric vehicle registrations across 15 nations surging over 50% in March.
The American market shows more restrained responses. March sales of new electric vehicles dropped 25% from the previous year, Cox Automotive reports, as last autumn’s expiration of a $7,500 tax credit continues affecting American electric vehicle interest. However, used electric vehicle sales are climbing significantly, and rental customers appear increasingly willing to choose electric options temporarily to avoid high gas costs.
Car Rental Gateway, a digital booking platform, documented a 16% relative boost in electric and hybrid vehicle reservations during March. Board member Hannes Põldvee suggests rental companies that invested heavily in electric fleets could see benefits if elevated gas prices persist.
Increased electric vehicle demand is also strengthening used electric car values. John Coles, vice president of data science and analytics at ACV Auctions, an online marketplace where dealers and rental companies trade used vehicles, explained that electric vehicle prices had been declining for months but stabilized after oil price surges began in early March.
“We have seen EVs get a second lease on life due to the sustained pressure at the pump,” he said.
