Gas is much more expensive than it was a few months ago, and the Trump administration has just relaxed the rules on auto fuel efficiency. On September 28, the Department of Transportation announced a revision to the CAFE (Corporate Average Fuel Economy) standards, which set the average number of miles a manufacturer’s fleet must travel per gallon of fuel. The rule, which has already been signed by the administrator of the National Highway Traffic Safety Administration (NHTSA), will take effect 60 days after its publication in the Federal Register.
The new threshold for 2031 is 34.9 miles per gallon, equivalent to about 14.8 kilometers per liter. The rules approved by the Biden administration, on the other hand, aimed for an average of 50.4 miles per gallon, or about 21.4 kilometers per liter. Reuters reported this comparison based on estimates from the NHTSA, the federal agency that administers the program, which has been in effect since 1975.
The decision comes as American drivers face a sharp rise in gas prices. According to CBS News, citing AAA data, gas cost an average of $4.47 per gallon (about $1.18 per liter) on Monday, compared to $2.98 before the start of the war with Iran, which has disrupted global energy flows.
What’s Changing for Cars
According to the Department of Transportation, the revision will reduce the average cost to manufacturers of complying with the standards by $1,289 per vehicle. The administration also estimates total savings of $138 billion for Americans over the next five years, primarily due to lower prices for new vehicles.
However, the same government analysis points to the opposite effect on consumption: compared to the Biden rules, gasoline use in the United States would increase by 4.6% through 2050. This is a relative figure, because in absolute terms, fleet consumption would continue to decline, albeit more slowly. Reuters also reports that the savings for manufacturers would be offset by more than $1,600 in additional fuel costs over the average lifespan of a vehicle. Environmental organizations point out that the estimate is based on a price of $3.30 per gallon, which is well below the current price.
Transportation Secretary Sean Duffy defended the decision, arguing that the previous legislation mandated a shift to electric cars. “We have finally put an end to the illegal mandate that forced manufacturers to produce more expensive electric vehicles,” he said, according to CBS News. In reality, no federal law required manufacturers to sell electric cars: the 50% electric sales target by 2030 set by Biden was a goal, not a mandate. The Alliance for Automotive Innovation, which represents major automakers, says through its president, John Bozzella, that the NHTSA made the right decision by realigning the standards with the law and market conditions.
Emissions standards had already been scrapped in February
The revision of the CAFE standards follows yet another reversal. In February, the Environmental Protection Agency (EPA) had revoked the 2009 Greenhouse Gas Endangerment Finding—the measure that served as the basis for regulating vehicle greenhouse gas emissions under the Clean Air Act—and, with it, the federal standards on these emissions for cars, trucks, and other road vehicles. The agency clarifies that the decision applies only to greenhouse gases and does not affect regulations on other air pollutants.
The two measures operate on different levels—one addressing exhaust emissions, the other fleet efficiency—but in just a few months, they have both eased the restrictions that, in previous years, had pushed the industry toward more efficient vehicles and electric vehicles.
The new target, after all, is only slightly higher than the one already achieved: according to NHTSA estimates, the fleet average was about 30.1 miles per gallon in 2024, just over 12.8 kilometers per liter. While Americans are paying more and more at the pump, Washington is asking automakers for only a minimal improvement.
