Weighing the Costs of Obama’s Fuel Planby Tim Manni
Buying a new car is now going to cost you extra — $1,300 extra by 2016. President Obama announced new fuel and emission standards today in Washington. According to the president, the new standards are expected to lower our dependence on foreign oil, increase fuel efficiency, and reduce the amount of harmful emissions caused by automobiles. He also said the standards are a win-win for both states and automakers:
Obama said the proposal would save 1.8 billion barrels of oil over the lifetime of the vehicles sold in the next five years, akin to removing 177 million cars from the roads over the next 6 1/2 years.
In that period, he said, the savings in oil burned to fuel American cars, trucks and buses would amount to last year’s combined U.S. imports from Saudi Arabia, Venezuela, Libya and Nigeria.
Obama’s plan gives states the higher standard for emissions they requested but also sets a single national standard, sought by automakers, and more time for automakers to make the changes.
What about that extra $1,300? How will the extra costs impact auto sales and thus the economy as a whole?
“Consumers pay less for fuel, which means less money going overseas and more money to save or spend here at home. The economy as a whole runs more efficiently by using less oil and producing less pollution,” [the president] said. “And companies like those here today have new incentives to create the technologies and the jobs that will provide smarter ways to power our vehicles.”
Consumers were already going to pay an extra $700 for mileage standards that had been approved previously, according to administration officials. The Obama plan adds another $600 to the price of a vehicle, bringing the total cost to $1,300 by 2016.
READERS: Are the president’s new fuel and emission standards worth their price tag?