Fuel Economy Standards Will Raise Car Prices by 2025

To achieve the government-mandated 54.5 miles per gallon by 2025, vehicle prices should increase by an estimated $2,600.

As the U.S. auto industry strives to meet higher average fuel economy standards for new vehicles, consumers will face higher prices in the future, and EPA official told the Detroit Free Press, estimating cars made in 2025 will cost $2,600 more than the new cars in 2011 cost.

The prict increase is the most cost-effective method to reaching government standards for improving engines that use gasoline. Automakers are encouraged to achieve 54.5 miles per gallon by 2025, although there will be some exceptions and incentives for companies.

In 2010, average fuel economy was about 20 miles per gallon. It is estimated to be 27 mpg in 2016.

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