U.S. sets stricter car-mileage standards

The Obama administration handed down a tough new set of mileage standards for cars and light trucks Thursday, as part of its drive to cut harmful emissions and ease the nation's dependence on foreign oil. The rules, based on a joint proposal by officials at the Environmental Protection Agency and Transportation Department, aim to raise the average mileage of new cars on U.S. roads to 35.5 miles per gallon by 2016. That's a 34% increase from the current 26.4 mpg level and accelerates emissions targets set by Congress in 2008.

The rules come at a cost, though. Government officials estimate they will add, on average, about $1,000 to the price of a new car. Making cars meet those targets, which take effect from 2012, will likely to cost the automotive industry about $52 billion, they said.

At the same time, the government estimates a savings of about 1.8 billion barrels of oil over the lifetime of those cars built under the new rules. That translates to fuel savings of about $3,000 per car. The new rules should also reduce emissions of carbon dioxide and other greenhouse gases by about 30% from 2012 to 2016.
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