One other consideration to make, once EVs dominate the road space, in many countries, significant levels of tax revenue are generated through petrol receipts. This will no longer be the case and will probably require a move to road pricing.
If X becomes cheaper, the right thing to do (IMO) is to return the savings to the people, not to spend the surplus on Y or find a new Z to spend it on. If the people want to choose to spend more on Y or Z now that they've seen the savings on X returned to them, that's perfectly rational possibility, but shouldn't be automatic.
That's exactly the point I was making.