The Trump administration on Monday released new fuel economy standards that relax regulatory requirements for automakers to control pollution from gasoline-powered cars and light trucks.
The new rules were released shortly after President Donald Trump rejected an Iranian proposal to open the Strait of Hormuz, sending oil prices soaring.
Fuel economy requirements, known as Corporate Average Fuel Economy or CAFE standards, set out how far new vehicles need to travel on a gallon of gasoline. The standards have been implemented since the 1970s energy crisis. Over time, automakers have gradually improved their vehicles' average efficiency.
The Department of Transportation and the National Highway Traffic Safety Administration estimated that the finalized standards would correspond to a combined industry fleetwide average of roughly 34.9 miles per gallon for passenger cars and light trucks in the 2031 model year. This represents a decrease from a projected 50.4 miles per gallon in 2031 under rules put in place by the Biden administration.