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Federal officials say their plan to require average fuel mileage of 54.5 miles per gallon for cars and light trucks by 2025 would net a consumer $3,000 to $4,400 in savings over the vehicle’s lifetime – in addition to the vital benefits the new standard would bring to the environment.

Obama administration officials also announced that the stronger fuel economy would reduce America’s dependence on oil by an estimated 12 billion barrels.

By 2025, officials say the new standard would reduce oil consumption by 2.2 million barrels per day – enough to offset almost a quarter of the current level of foreign oil imports.

But the new mileage requirement would come at a price for automakers. The added cost to meet the goal by model year 2025 would be about $2,000 per vehicle.

However, fuel savings for consumers are expected to more than offset the higher vehicle costs, as much as a net saving of $4,400 for the lifetime of a model year 2025 vehicle.

“We expect this program will not only save consumers money, it will ensure automakers have the regulatory certainty they need to make key decisions that create jobs and invest in the future,” said U.S. Transportation Secretary Ray LaHood.

Read the entire article at: eCreditDaily

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