Trump’s Fuel Economy Rollback Could Cost Drivers Thousands More In Gas
The Trump administration says relaxing federal fuel economy standards will make new cars cheaper. They say a lot of things though, so take it all with a huge grain of salt. But while buyers might save money at the dealership, they could end up handing those savings right back to the oil companies over the next decade.


The current administration's proposed Corporate Average Fuel Economy (CAFE) rules lower the industry-wide target for the 2031 model year from 50.4 mpg to 34.9 mpg. The Department of Transportation (DOT) argues that drawing back the gas mileage requirements will save automakers billions, potentially reducing new-car prices by an estimated $1,289 per vehicle. Don't forget, this is also the administration that promised everyone gas prices below $2.00 per gallon, and we all know how that's going.
Here's where it all comes full counterintuitive circle: Less efficient vehicles burn more fuel, and those costs can quickly erase any upfront savings at the dealership. At the current average national fuel price of $4.36/gallon for regular grade gas, that comes to 296 gallons of fuel worth of money. If the vehicle in question averages 30 MPG, that's not even 9,000 miles worth of gas, which isn't even a year's worth of driving saved when the dust settles. Those savings all but negate themselves once this threshold is crossed, and with buyers owning cars longer than ever, it's a losing battle and a flawed concept as a whole.
The rollback gives manufacturers more flexibility to sell less fuel-efficient vehicles, including large SUVs and V8-powered trucks. Whether that freedom translates into meaningful sticker price reductions remains uncertain, but again, we know how this administration says one thing and delivers another.
For buyers, the trade-off is straightforward: A less expensive vehicle today could mean years of higher fuel spending in the future. With gasoline prices notoriously unpredictable, and the current political and economic climate not doing it any favors, any savings at the dealership may not be as straightforward as they seem.


