The US Department of Transportation has finalized a rollback of fuel efficiency rules, reversing the Biden administration’s push for better energy use. Announced on Monday, the decision is expected to raise fuel costs for drivers.
Under the new rules, carmakers must reach an average of 14.7 kilometers per liter by 2031, down from 21.4 kilometers per liter under the previous plan. Reuters reports that the new target is about 34.9 miles per gallon by 2031, compared with the Biden-era goal of 50.4 mpg.
The standards will officially end credit trading between automakers starting in 2028, particularly affecting electric vehicle manufacturers that have sold credits to competitors.
The department says carmakers will save $1,289 on each new vehicle. Drivers, but, are expected to spend more: over a car’s lifetime, owners will pay more than $1,600 extra for fuel. The National Highway Traffic Safety Administration (NHTSA) estimates that US gasoline use will rise by 4.6% through 2050 compared with the previous standards, increasing costs for drivers and fuel consumption.
For automakers, the rules bring mixed news. The end of credit trading in 2028 will affect electric vehicle makers such as Tesla and Rivian, which have made money selling credits to rivals that could not meet the old targets. Industry reports say the change will cut a basic source of income for EV companies.
General Motors, Toyota, Volkswagen, Hyundai and Ford support the move through the Alliance for Automotive New idea. The group says the government made the right call and that the new rules better fit current laws and buyer preferences. WOKV/AP quoted Alliance CEO John Bozzella as saying the standards now match legal requirements and real demand. Automakers had previously complained that the earlier standards did not reflect market demand. Reuters reported that shares of traditional automakers rose after the announcement, suggesting investors viewed the decision as relief for the industry. The move is part of a broader rollback of climate and electric vehicle policies from the previous administration.
Gas prices have risen since the US and Israel clashed with Iran in late February. For many families, weaker efficiency rules mean even higher bills.
Reuters says the Trump administration’s move breaks sharply with the previous focus on cutting emissions and saving energy. Carmakers may save money up front, while drivers and the environment could face higher costs in the long run.
