US to Reduce Fuel Economy Requirements for Automobiles

The US Department of Transportation will approve new fuel consumption standards for automobiles and light trucks on September 28. The new rules will be significantly relaxed compared to the requirements set by the Biden administration.

Under the new rules, by 2031 manufacturers' vehicles will need to average 34.5 miles per gallon, or roughly 14.7 kilometers per liter. The current plan called for a target of 50.4 miles per gallon, or about 21.4 kilometers per liter.

According to the Department of Transportation's calculations, the change will reduce the average price of a new car by about $930. The less stringent requirements will also make it easier for manufacturers to sell gasoline-powered models and will ease the pressure to transition to electric vehicles.

On the other hand, the new rules will increase fuel consumption by about 100 billion gallons through 2050. Drivers will spend an additional $185 billion on fuel, while carbon dioxide emissions will rise by about 5%. The change comes into effect at a time when fuel prices in the US are already high.

Source: Reuters