President Donald Trump’s administration says rolling back federal fuel-economy rules could reduce new-car prices. But an analysis by the National Highway Traffic Safety Administration (NHTSA) projects drivers would spend $1,624 more on fuel over the life of a vehicle bought under the proposed standards—potentially outweighing the upfront savings.
The U.S. Department of Transportation said Sept. 28 that it is moving to lower the required fleetwide average fuel economy for cars from more than 50 miles per gallon by 2031 to just under 35 mpg. The administration says the change would make cars about $1,300 cheaper on average.
The proposal comes as the average U.S. gas price reached $4.43 on Sept. 30, according to AAA. That was up from $4.07 a month earlier and $3.15 a year earlier.
Administration officials argue that less-stringent requirements would give automakers more flexibility and save Americans $138 billion over five years. Critics say lower fuel efficiency could leave drivers paying more at the pump.
Drivers Could Spend $1,624 More on Fuel
NHTSA’s analysis estimates that drivers would spend $1,624 more on gas over the lifetime of a car bought under the proposed rules. The agency estimates fuel spending of $15,333 for a car purchased under the 2011 model-year requirements, compared with $16,957 under the proposed lower-MPG standards.
The agency says lower fuel-economy standards reduce some of the consumer benefits associated with more efficient vehicles, including lower fuel costs and fewer trips to the pump.
Kathy Harris, director for clean vehicles at the Natural Resources Defense Council, criticized the plan, saying drivers would hand more of their paychecks to fill up. Sierra Club Clean Transportation for All Director Katherine García also argued that less-efficient cars mean more fuel use and dirtier air.
The administration has said lowering vehicle prices could help more families afford newer cars with additional safety features. NHTSA Administrator Jonathan Morrison supported the proposal, saying lower prices could make newer vehicles more accessible.
Why the Administration Wants to Change the Rules
The Transportation Department says the proposal would give automakers flexibility to produce vehicles consumers want and save Americans $138 billion over five years, in addition to lowering sticker prices. The average new-vehicle price was nearing $50,000 last month.
The Alliance for Automotive Innovation, which represents major automakers, called the proposed changes an appropriate course correction. The group said the standards finalized under the previous administration did not align with market demand.
Drivers weighing a new vehicle may want to consider both the purchase price and expected fuel costs. The administration’s projected $1,300 average price reduction is an estimate, as is NHTSA’s $1,624 lifetime fuel-cost increase; actual savings and costs will vary by vehicle and driving habits.
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