[Cyclefrance]

US revises fuel efficiency rules
THE Bush Administration yesterday announced significant revisions to US vehicle fuel efficiency standards, a policy of central concern to US oil demand forecasts. With the bulk of US petroleum consumption stemming from vehicle gasoline, the steady drop in average fuel efficiency - and hence oil demand growth - has been driven by sales of 'light trucks' (Sports Utility Vehicles, pickups, etc.), which are not covered by Corporate Average Fuel Economy (CAFE) rules. Under the Bush proposal, the light trucks that now comprise half the vehicles on America's roads will be regulated by new CAFE standards, to be phased in through to 2011. US oil consumption is predicted to fall 243M barrels over the lifetime of vehicles built between 2008 and 2011. Environmentalists immediately criticised Bush, calling the impact on oil consumption inadequate. Meanwhile, analysts pointed out that surging gas prices are likely to pre-empt the new CAFE rules, forcing up vehicle fuel efficiency and dampening US consumption irrespective of regulatory enforcement.

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