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Risk to US gasoline demand: unwinding CAFE mandate

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03 August 2018

Risk to US gasoline demand: unwinding CAFE mandate

Report summary

The US has unveiled a highly-anticipated proposal to weaken current fuel economy standards of light vehicles. The proposal also seeks to revoke California's right to set its own fuel efficiency standards. While the proposal is not yet final, the federal government's intentions present an upside risk to US gasoline demand, which we have falling by 1 million b/d between now and 2030 in our base case. The risk is material to the global outlook, as the US represents a third of global demand for gasoline.

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