Trump’s EPA Breathes New Life Into Slowing U.S. Gasoline Demand
- EPA plans to revise tightening greenhouse gas emissions rules
- U.S. cars will no longer need 55mpg fuel efficiency by 2025
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Just as the world’s biggest gasoline consumer started to show shrinking demand growth, the U.S. Environmental Protection Agency swooped in to slow the decline.
The EPA plans to revise rules requiring automakers to gradually reduce polluting emissions and ramp up fuel efficiency. The mandate to produce cars and light-duty trucks that run 55 miles per gallon by 2025 are expected to hold at the 2020 level of 42.5 miles per gallon, according to Roger Read, senior analyst at Wells Fargo. Premium gasoline prices have been surging amid the tighter restrictions, and adoption of more efficient vehicles has lagged under so-called CAFE standards.