Several months in the making, the Obama administration has officially signed off on the final CAFE regulations that will mandate average vehicle fuel economy between the 2017 and 2025 model years. The plans builds on standards already put in place for the 2012-2016 model years.
According to a report released by the Congressional Budget Office earlier this year, the new fuel economy standards will cost the nation $57 billion in tax revenue through the 2025 model year. As a result, the government could increase its 18.4 cent per gallon gas tax to offset the losses associated with more fuel efficient vehicles. The government hasn't increased the gas tax since 1993.
However, it remains possible that the 54.5mpg mandate could be altered at some point in the future. Presidential hopeful Mitt Romney opposes the standard and could opt to change it if elected to the White House.
"The best approach is to try and build vehicles that people want, rather than having the government telling the companies what they must make," he told The Detroit News.
"I would work with the manufacturers to find ways to encourage fuel economy on the part of the consumer. But trying to have the manufacturer push the product on the consumer "" that the consumer doesn't want "" is not the right approach."
