Weakened US fuel-efficiency rules and promises of cheaper cars could see drivers pay higher running costs while also increasing carbon emissions.

The US Department of Transportation has rolled back fuel efficiency rules as part of its initiative to lower vehicle prices under the Freedom Means More Affordable Cars campaign. President Joe Biden's revised Corporate Average Fuel Economy (CAFE) rules aimed to incentivize the production of low emission electric vehicles and hybrids, estimating that they would save 70 billion gallons of fuel over 25 years.

However, with rising gas prices due to Middle East conflicts straining global supply, any upfront savings are outweighed by increased fuel costs for drivers. Democratic Senator Sheldon Whitehouse notes that fuel economy standards have saved drivers hundreds of billions of dollars. The Union of Concerned Scientists estimates that an earlier version of CAFE regulations saved US consumers about $321 billion at the gas pump since 2010.

The US is the world's largest petroleum consumer, burning through 20 million barrels of oil per day, making strong auto standards crucial for reducing pollution and oil usage. Rolling back these fuel economy standards poses a significant setback for climate goals, as transportation accounts for nearly 28% of US greenhouse emissions.

This move, following President Trump's elimination of greenhouse gas emissions standards for light and heavy-duty vehicles last year, not only compounds a considerable step back but also sends a clear message to automakers to maximize oil usage, benefiting oil company profits at the expense of climate targets and rising temperatures.

Despite the rollback, climate analysts believe that the transition to electric vehicles will still occur, as these vehicles offer lower running costs fueled by cheaper, domestically secure energy.