The Trump administration has finalised weaker fuel-economy standards, requiring a fleet average of 34.9 mpg by 2031, compared with the previous 50.4 mpg target.
The administration says the rollback could reduce new-vehicle prices and save consumers $138 billion over five years, while critics warn of higher fuel consumption and emissions.
The changes come as US energy prices face pressure from global supply disruptions, raising questions about the longer-term cost of owning less fuel-efficient vehicles.
The Trump administration has finalised new US fuel-economy standards that significantly reduce the mileage requirements for cars and light trucks, reversing stricter rules introduced under former President Joe Biden. The new rules require an average fleet fuel economy of 34.9 miles per gallon by the 2031 model year, compared with the previous target of about 50.4 mpg.
What Has The Trump Administration Changed?
The new rules were issued by the US Department of Transportation and the National Highway Traffic Safety Administration (NHTSA). They relax the Corporate Average Fuel Economy (CAFE) requirements that automakers must meet across their fleets.
The Trump administration has argued that the earlier standards placed excessive costs on manufacturers and encouraged the production of electric vehicles at a time when many consumers continued to prefer petrol-powered cars.
Under the revised rules, the government estimates that the average cost of a new vehicle could fall by about $1,300, while consumers could save a combined $138 billion over five years.
The administration has also argued that less stringent requirements could make newer vehicles more affordable and support US automobile manufacturing.
The changes represent a significant departure from Biden-era policy, which sought to raise fuel efficiency and encourage a shift towards electric and other lower-emission vehicles. The Biden administration had projected an average fleet fuel economy of around 50.4 mpg by 2031, according to Time.
What Could The Rollback Mean For Drivers?
The effect on consumers could depend on both the price of a new vehicle and how much owners subsequently spend on petrol.
The NHTSA's revised standards are expected to reduce the upfront cost of vehicles because manufacturers would have less need to use more expensive fuel-saving technologies. However, lower fuel efficiency means vehicles could consume more petrol over their lifetimes.
Reuters reported that the revised standards are estimated to increase fuel costs by more than $1,600 over a vehicle's lifetime, while fuel consumption could rise by 4.6% through 2050.
The rollback could also have implications beyond the car market by increasing petrol consumption over time. Reuters reported that the changes are expected to raise fuel use, potentially affecting US demand for crude oil. The development comes as oil markets are already responding to broader geopolitical and energy-policy developments.
The policy therefore creates a trade-off for consumers: lower vehicle costs at the point of purchase, but potentially higher fuel expenses over the vehicle's lifetime. Its longer-term effect will also depend on how quickly Americans shift towards electric and other alternative-fuel vehicles.
