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U.S. 54.5 MPG Fuel-Economy Standard May Cost $157 Billion

A proposed U.S. rule requiring automakers to double average fuel economy of vehicles to 54.5 miles per gallon by 2025 may cost $157 billion, two agencies said in a draft.

The standard would add an average of $2,000 to the price of each new passenger vehicle sold by 2025, the National Highway Traffic Safety Administration and Environmental Protection Agency said in a proposed rule posted today on NHTSA’s website. Benefits of $419 billion to $515 billion in fuel savings would offset the costs, the highway agency wrote.