US new vehicle fuel economy stalls as petrol prices drop
Average fuel efficiency of new cars sold in the US has flatlined at 25.3 mpg, as buyers turn to larger vehicles amid the lowest petrol prices in four years.
The average fuel economy of new vehicles sold in the United States has stopped improving, with November figures holding at 25.3 miles per gallon according to University of Michigan researchers. This marks the third consecutive month without progress, and a drop from August’s 25.8 mpg peak.
Buyers in the US have shifted back towards pickups, large SUVs and crossovers as petrol prices have fallen to their lowest level in four years. With the average cost of regular unleaded now well below $3 per gallon, demand for less fuel-efficient vehicles has surged. This shift has effectively cancelled out efficiency gains from new technology and lighter construction in manufacturers’ line-ups.
Why buyers are choosing bigger vehicles
Fuel prices have a direct impact on consumer choice in the US market. When petrol is cheap, buyers are more willing to overlook fuel efficiency in favour of size, comfort or utility. This trend is evident in the strong sales of pickups and large SUVs, segments that typically lag behind smaller cars and hybrids in fuel consumption. Automakers continue to improve efficiency across their ranges, but the effect is being offset by the market mix shifting towards heavier, thirstier models.
Outlook for fuel economy and alternative vehicles
With petrol prices expected to remain low in the short term, analysts suggest that the average fuel rating of new vehicles is likely to stay flat or even decline. This could challenge regulatory efforts to raise fleet-wide efficiency standards. For manufacturers, the current market favours high-margin trucks and SUVs, though longer-term trends may shift if fuel prices rise or if policy pressures increase. For more on how fuel prices affect electric and hybrid vehicle prospects, see Samsung SDI: Low Oil Prices Unlikely to Derail Electric Vehicle Growth.
