Fuel Economy Regulation Rollback Could Cost Drivers $1,432

Government fuel economy regulation has effectively lost its force after penalties were ended under the One Big Beautiful Bill (OBBBA) signed by Donald Trump in July. Federal data show automakers paid more than $1 billion in fuel-economy fines over the past decade. The legal standards still exist, but without penalties their enforcement power is sharply weakened, raising the risk that drivers will pay more at the pump.

Market analysts warn the change could slow efficiency upgrades, shifting more costs to consumers and harming the environment. The Biden administration previously estimated that standards for 2027–2031 would save consumers more than $23 billion.

Research from the University of Tennessee found that from 1975 to 2018, rising fuel economy nearly doubled efficiency, cutting 2 trillion gallons of gasoline use and 17 billion tons of carbon dioxide.

A review by USA Today of about 100 popular models compared current efficiency to the targets due by 2031 and calculated potential fuel-cost savings of $53 to $1,432 per vehicle, assuming 15,000 miles driven annually and the August national average gas price.

Among examples, Hyundai models ranged from an estimated $148 in savings for the Elantra and $278 for the Tucson to $1,095 for the Palisade. Kia showed $53 for the Sportage, $793 for the Soul, and $1,095 for the Telluride. Popular Toyota sedans, the Camry and Corolla, came in at $199 and $278. Many other brands and pickup trucks were generally in the $700 to $1,000 range.

Industry voices say global competition still pushes efficiency. K. Venkatesh Prasad of the Center for Automotive Research (CAR) said, “To compete globally, automakers can’t rely on domestic rollbacks alone. Advancing fuel-efficiency to meet standards in major markets like China and Europe is unavoidable.”

Debate also continues inside the Trump administration and at the Environmental Protection Agency (EPA), which has moved to ease vehicle greenhouse-gas rules. The EPA’s own analysis indicates that keeping current rules would raise sticker prices by about $900 for sedans and $2,600 for SUVs, but drivers would save an average of $4,400 over a vehicle’s life through lower fuel and ownership costs. If penalties are gone and standards are weakened, those savings are at risk.

What this means for buyers is straightforward. With fuel economy regulation diluted, automakers may face less pressure to invest in efficiency, and households could forfeit hundreds to more than a thousand dollars in potential savings.

Consumer advocates and analysts say the outcome now hinges on whether manufacturers continue efficiency investments for international markets—and whether U.S. regulators restore penalties that give fuel economy regulation real teeth.

BY HOONSIK WOO [woo.hoonsik@koreadaily.com]