Gasoline starts to spike again - Obama set to announce tougher fuel economy regulations

Just when you thought that the price of gasoline was getting down to a respectable level again, the prices started spiking up 25 cents in just 3 weeks. But according to a survey, it appears that the spike will not continue to rise. This is not the right time for price hikes, and the trend most certainly will end. It is a noted fact that this time last year the price of gasoline was soaring at approximately $3.80. The latest survey shows the price of gasoline the cheapest at $1.99 per gallon, and the most expensive in Chicago at $2.63. So it is a little tough right now for the consumers of gasoline, and most of the people out there have no choice.
But now the government has decided to announce on Tuesday to propose stricter fuel economy standards on automakers in an effort to cut down on vehicle greenhouse gas emissions. At the present time the economy standards are set at 27.5 mpg for cars and 23.1 mpg for trucks. That average will change to 39 mpg for cars and 30 mpg for trucks. It is an accelerated plan that was passed by congress at the end of 2007, so the automakers knew it was coming, but now will have to happen at least 4 years earlier. The fuel economy increase will gradually begin in 2012.
This may be bad news to the oil companies. Now the Obama administration predicts that the changes will save 1.8 billion barrels of oil by 2016. That is about 3 months of oil consumption. The flip end will be that the cost of an automobile should rise on the average of $600 to the cost of a car. That is above what has already been added, $700 to change the fuel economy rules that have already been enacted by the government. The bottom line is that the consumers will be able to make up for the cost in the gas by the amount they will save.
The EPA (Environmental Protection Agency), is responsible for formulating the figures of fuel economy and this information is reflected on new car window stickers. They are also responsible for regulating exhaust emissions.
Announcements by President Obama regarding these changes are set to take place in the Rose Garden at the White House tomorrow at 12:15PM.