Average U.S. New Car Fuel Economy Drops Again

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Low gas prices apparently go hand in hand with consumers buying cars and trucks that drink more fuel. The monthly fuel economy statistics for new U.S. cars continue to drop, with the average miles per gallon (MPG) rating for new cars purchased in November falling to 25.0 mpg. That's 0.1 mpg lower than the October number, as calculated by Michael Sivak and Brandon Schoettle at the Transportation Research Institute at the University of Michigan (UMTRI).

The researchers say that the decline "likely reflects the continuing drop in the price of gasoline in November, and the consequent increased sales of pickup trucks, SUVs, and crossovers." The 25.0 mpg average is almost a full mpg (actually 0.8 mpg) from the peak the U.S. reached in August 2014. Overall, since October 2007 when UMTRI first started calculating the monthly average, the cars we buy achieve 4.9 mpg more.

The sales-weighted unadjusted Corporate Average Fuel Economy (CAFE) performance rating averaged 31.1 miles per gallon in November. While the window sticker average is 4.9 mpg higher than when the data were first collected, the average is still 0.8 mpg below its all-time high set of 25.8 mpg set in August 2014. When gasoline prices started dropping in the United States, consumers purchased more light trucks and sport utility vehicles, which get lower mpg ratings and drive down the average.

Manufacturers’ improvements in fuel economy ratings (driven by government policy in most cases) is a fundamental and permanent change in America, similar to changes in the use of public transportation, increases in telecommuting, and changes in the age composition of drivers. Automakers continue to work toward the fleet mileage mandated average of 54.5 miles per gallon by 2025. 

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