Trump administration announces package of measures that strengthen the oil industry and discourage electricity
The United States seems to have found the least expected formula for selling more gasoline cars. Instead of promoting clean engines, they are focusing on vehicles that consume more fuel, just as the rest of the world is talking about electrification and zero emissions.
The new proposal from the National Highway Traffic Safety Administration (NHTSA) aggressively rolls back fuel economy standards established during the Biden era. For the model period between 2022 and 2031, the goal becomes an average of 34.5 miles per gallon in 2031, a far cry from the 50.4 miles per gallon previously established.
During the previous administration, NHTSA increased these requirements year after year. The plan called for increases of 8% per year for 2024 and 2025 models and 10% for 2026. Now the new trajectory calls for increases of only between 0.25 and 0.5% per year, a margin that leaves room for more internal combustion cars on dealerships and less pressure on electric cars.
The agency itself acknowledges that the new program would reduce the average starting price of each vehicle by about $900. The cost disappears from the sticker but reappears at the gas station. Internal projections point to a standard capable of reducing gasoline consumption by 64 billion gallons and avoiding 659 million tons of emissions, with net benefits of $35.2 billion for drivers. These numbers dissipate with the change in leadership.
The proposal also touches on the roots of the credit market…
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