increase in road usage over the last decade

• In 2023 , EVs displaced almost US $ 12bn in gasoline and diesel tax revenues globally while only generating about US $ 2bn in electricity tax revenue , resulting in a net loss of US $ 10bn .

• By 2035 , the net tax revenue loss due to EV adoption is projected to reach between US $ 105-110bn globally , more than doubling from 2030 levels as road transport electrification accelerates .

• Fuel taxes often represent a major source of income for governments and are frequently used to fund road infrastructure , making their loss significant for public finances .

• The impact varies by region , with Europe facing the largest revenue losses due to higher fuel tax rates . By 2035 , fuel tax revenue in Europe is expected to drop by nearly US $ 70bn .

• While the loss of fuel tax revenue is a global concern , it may be partially offset by reduced fuel import costs for oil-importing countries . As a study in Rwanda demonstrated , the shift to electric vehicles presents an opportunity for significant cost savings .