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Opinion | Michigan can’t control war-driven oil prices. We can control our transportation future
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Michigan’s average gas prices are nearing $5 a gallon, adding to high costs Michiganders can’t afford. More than sticker shock, though, the uncertainty of global events is driving anxiety around energy prices. From the sudden start of the Iran War to strikes in the Strait of Hormuz to a potential ceasefire to a blockade, the day-to-day unpredictability of the conflict highlights the importance of energy independence — a lesson we should’ve learned over 50 years ago.
During the oil shocks of the 1970s, President Jimmy Carter turned to home-grown renewable energy as a solution to geopolitics-induced price volatility. Those were nascent, expensive technologies back then. But now, renewables are the cheapest and quickest to build, and electric vehicles provide reliable transportation with stable fuel costs.
Unlike gas and diesel-powered vehicles, EVs are immune to sudden shocks. They depend on stable electricity prices, determined on a yearly basis by regulators. Electricity costs do not fluctuate unpredictably and dramatically, but rather increase slowly over time. In contrast, in the two months since the closure of the Strait of Hormuz — through which one-fifth of the world’s oil passes — gas and diesel prices increased more than 30%. Michigan’s household electricity spending, on the other hand, rose just 8.8% during the five year period from 2018 to 2023. EVs are cheaper on a per mile basis than gasoline cars, too, regardless of global politics. While the driving cost per mile for EVs has hovered around 6 cents since 2022, it’s typically more than double that for gasoline cars.
They also make sense for businesses. Although the US is a net oil exporter, it’s still part of a global market — and overseas supply shocks drive costs at home. Today, heavy duty trucks travel 6.5 billion miles on Michigan’s roads every year, with fueling accounting for up to 25% of operating costs. Transitioning our transportation sector away from fossil fuels will insulate the economy from inflationary shocks caused by sudden price hikes. Fleet trucks and buses are among the most impactful EV opportunities. With Tesla’s electric semi-truck factory in Nevada now open, adoption is set to ramp up in the coming years. The factory can produce up to 50,000 semi-trucks a year and already has contracts with customers like PepsiCo, DHL, Walmart and Costco. Stabilizing the cost of shipping goods and transporting people will have a huge impact on Michigan’s economy, allowing it to thrive even in times of uncertainty.
More EVs on the road help keep electricity rates lower for everyone. EVs generate more revenue than costs for utilities. In fact, between 2011 and 2024, Michigan EV owners contributed approximately $166.9 million more in revenues than they cost utilities. That means utilities can use that extra revenue toward their operations and service improvements without needing to push all of those costs onto ratepayers. As vehicle-to-grid (V2G) technologies expand, allowing EVs to charge when electricity prices are low and feed energy back to the grid when demand is high, electricity bills will become even more affordable. For households and businesses craving predictability in their monthly budgets, EVs are an obvious choice.
But we need policies that will allow us to take advantage of those benefits. That starts with fair EV taxes, more charging infrastructure, and stronger grid integration. Right now, Michigan has the highest EV fees in the nation, charging drivers hundreds more than gas vehicle owners in fees and taxes. While EV drivers still end up paying less overall because of fuel cost savings, they should not be taxed more simply for going electric.
Senate Bill 593 would create a fair tax structure that encourages adoption. The state is also investing $30 million in public charging, multifamily housing charging, and fleet electrification. Lawmakers should continue to support programs like this that will enable more people across the state to access EVs. Finally, Michigan should require utilities to establish robust vehicle‑to‑grid programs to fully harness EVs’ grid and affordability benefits.
The Iran War has shown us just how important it is to have stable, home-grown clean energy. Every step we take back in policy leaves us more vulnerable to high costs and unpredictability. Let’s finally learn the lesson, 50 years in the making, that affordability and economic stability require energy independence.
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