Gas prices are spiking. This week EIA reported an increase in the average price of gasoline of 28 cents per gallon – with some states seeing more than 40 cent increases. That’s the largest nationwide weekly gas price increase since hurricane Katrina in 2005.
What’s 28 cents worth you ask? More than a $100 million a day it turns out.
That’s bad, but it could be worse. Without vehicle fuel efficiency and emission standards that are currently in place, American drivers would be paying an average of $50 million more per day on fuel costs.
That’s right, vehicle standards that went in to effect in 2011 are already saving Americans $50 million a day. By 2030, these same standards will deliver more the $300 million per day in fuel savings.
Source: U.S. Energy Information Administration, Gasoline and Diesel Fuel Update.
Fuel efficiency is insurance against volatile gas prices
Harvey. Irma. Each one of these devastating storms reminds those in their path the importance of having insurance to protect their families and their property. Buying flood insurance if you live in a flood prone area is a prudent economic decision. Same goes for buying other types of insurance like health insurance and car insurance that protect you – and your household budgets – from unforeseen events
Making our cars and trucks more efficient provides insurance against volatile gas prices. More efficient vehicles mean less economic pain when oil prices spike.
But it’s even better than that. Normal insurance only pays off when disaster strikes. More efficient vehicles save on fuel costs no matter what the pump price. The fuel economy and emissions standards currently on the books through 2025 are expected to cut fuel costs by 40 percent when they are fully implemented. That means savings no matter if gas costs $2/gallon or $5/gallon.
The average household in the U.S. has already saved about $250 since 2011 because of more efficient new vehicles. And every state in the nation aims to benefit. See what the savings in your state are from federal efficiency and emission standards.
By 2030, that total household savings are expected to rise to $2,800. That is if the Trump administration allows the standards to be implemented as currently written.
Ironically, while the country absorbs the largest price spike at the pump in recent years, the EPA held its first public hearing to reconsider federal emissions and efficiency standards for vehicles that are on the books through 2025 – the same standards that are saving consumers billions of dollars at the pump.
This is like calling your insurance agent to reduce your homeowner’s coverage while your house is on fire.
Despite the irony and the fact the agencies have shown the industry can achieve and even exceed the existing standards, Administrator Pruitt’s EPA is moving ahead to potentially weaken the vehicle standards.
My colleagues Dave Cooke and Richard Ezike testified at the hearing on Wednesday. They weren’t the only ones making the case for why it makes sense to make our cars and trucks less polluting and more efficient. Dozens of other supporters called for maintaining strong standards – everyone from concerned moms, to ministers, veterans, and unionized laborers. Concerned voices dominated the more than 100 testimonies.
UCS will continue to use the best available science to defend the standards and ensure consumers have more fuel efficient, lower polluting vehicles in every class to choose from.
If you agree keeping our vehicle efficiency and emissions standards in place makes sense to protect against future gas price spikes, or for all the other health, climate, and economic benefits from reducing our oil use, you can:
- submit an official comment to the latest EPA rulemaking on the standards
- call your Congressional representative to tell them that you don’t support President Trump’s attempted rollback of the standards, and
- send a note to automakers telling them that you demand more fuel efficient vehicles across all vehicle classes.