US regulators have finalized lower fuel economy standards, dropping the required fleet average to 14.7 km per liter by 2031, down from 21.4 km under the previous rules. The move cuts upfront vehicle costs by about $1,289 but adds more than $1,600 in fuel expenses over a car's lifetime. Gasoline consumption is projected to rise 4.6% through 2050 compared to the earlier standards. Automakers, represented by the Alliance for Automotive Innovation, support the rollback, citing market demand and the high cost of electrification. Environmental groups like the Sierra Club oppose it, warning of higher pollution and health costs. The rule also ends credit trading between automakers in 2028, a revenue source for EV manufacturers like Tesla. The change is part of a broader effort to ease regulations on petrol-powered vehicles, including scrapping the $7,500 EV tax credit and removing tailpipe emissions standards. This reversal will have long-term effects on US carbon emissions and the competitiveness of the domestic auto industry.
