President Barack Obama has approved a new set of rules aimed at toughening up fuel efficiency in American cars. The Corporate Average Fuel Efficiency (CAFE) standards are demanding a near-doubling of the average fuel efficiency by the year 2025.
Under the new standards, car makers will be forced to improve the overall average fuel efficiency of their vehicles from 27.5 miles per gallon to 54.5 miles per gallon. Industry experts predict the transition will save the U.S. nearly 2 billion barrels of oil per day.
There are also incentives being offered to auto makers that introduce all-electric vehicles of plug-in hybrids. Incentives will also be provided to those who use small petrol engines or run their vehicles on natural gas.