US GOVT SET TO ANNOUNCE LOWER VEHICLE FUEL ECONOMY STANDARDS

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RismadarVoice Reporters
September 1, 2026

The United States government is set to introduce significantly reduced vehicle fuel economy requirements, reversing stricter standards introduced under the previous administration aimed at encouraging automakers to produce more fuel-efficient vehicles.

US Transportation Secretary Sean Duffy announced on Monday that the Trump administration would soon unveil the new standards, describing the move as a measure designed to allow automobile manufacturers to produce vehicles based on consumer demand.

The final standards have not yet been released, but automobile manufacturers are expecting them to align with a proposal from the National Highway Traffic Safety Administration (NHTSA) issued in December.

Under the expected changes, the average fuel economy requirement for vehicle fleets could be set at about 34.5 miles per gallon by 2031, compared with the 50.4 miles per gallon target established under former President Joe Biden’s administration.

Duffy said the new policy would focus on supporting the US automobile industry and giving manufacturers more flexibility in vehicle production.

The previous administration’s fuel economy rules were designed to reduce greenhouse gas emissions, lower fossil fuel consumption and encourage the production of electric vehicles as part of broader clean energy efforts.

The NHTSA had proposed revising earlier fuel economy requirements and gradually increasing efficiency targets between 2027 and 2031. Under the Biden-era rules, vehicle efficiency requirements increased by 8 per cent annually for model years 2024 and 2025, 10 per cent for 2026, and 2 per cent annually from 2027 through 2031.

The proposed rollback is expected to make it easier for automakers to meet future compliance requirements by allowing them to use credits earned from exceeding previous efficiency targets.

According to the NHTSA, the new proposal could reduce the cost of new vehicles by about $930 per unit. However, the agency also estimated that it could lead to increased fuel consumption, higher fuel spending and greater carbon dioxide emissions over the coming decades.

The US Congress had earlier removed penalties for automakers that fail to meet fuel economy standards and ended a $7,500 tax incentive for consumers purchasing electric vehicles. It also withdrew California’s authority to ban the sale of gasoline-powered vehicles by 2035, a decision the state is challenging.

The planned changes mark a shift in US vehicle policy, moving away from previous efforts to accelerate fuel efficiency and electric vehicle adoption.

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