Analysis-Trump fuel economy rollback may make cars cheaper, but higher gas bills will absorb savings

By Valerie Volcovici

WASHINGTON, Dec 8 (Reuters) – The Trump administration’s proposal to roll back Biden-era vehicle fuel efficiency standards may save automakers in the U.S. tens of billions of dollars and potentially lower upfront purchase costs for American car buyers.

But any savings at the dealership will vanish quickly as drivers are forced to shell out more cash at the nation’s fuel pumps, according to industry experts who analyzed the administration’s proposal as well as the administration’s own projections.

The National Highway Traffic Safety Administration and Environmental Protection Agency last Wednesday proposed cutting the fuel economy requirements for cars to 34.5 miles per gallon on average by 2031, down from the 50.4 miles per gallon (21.4 km per liter) set by former P