U.S.

Fuel For Thought

By CBSNews.com staff CBSNews.com staff

July 2, 2001 / 12:23 PM EDT / CBS

A National Academy of Sciences report says U.S. automakers can increase the fuel efficiency of passenger cars, gas-guzzling sport utility vehicles and other light trucks by 25 percent to 30 percent over the next 10 to 13 years, according to a Washington source who was briefed on the study.

The NAS was scheduled to meet with U.S. lawmakers, environmental groups and automakers Monday to summarize the report that was requested by Congress.

The Bush administration has said it will rely on the results of the NAS study before deciding whether to require vehicles to get better gasoline mileage.

The White House mentioned the possibility of raising fuel economy standards in its energy policy, drafted in the midst of what the administration has called an energy "crisis" — one marked by blackouts in California, high heating oil costs in the Midwest and rising gasoline prices.

A nationwide survey out Monday finds that gas prices continued to fall in the past two weeks, dropping nearly 5 cents nationwide, but an analyst warns the market is bottoming out and prices could start to rise.

The NAS report does not call for specific increases in the mileage per gallon of gasoline for vehicles, but instead says automakers should be able to use technology to raise fuel standards, the source said.

Gas Prices Around The U.S.

Click here to check gas prices in your area.

The report also calls for the federal government to require SUVs, minivans and light trucks to get the same higher gasoline mileage of passenger cars.

The current Corporate Average Fuel Economy standards, adopted by Congress in the mid-1970s after the Arab oil embargo, require passenger cars to get an average 27.5 miles per gallon and light trucks to get 20.7 mpg.

At the time, light trucks were allowed to get lower mileage because they were used mostly by farmers and small businesses.

The report also recommends calling for ending the dual credit automakers get in meeting federal fuel standards by producing vehicles that burn both traditional gasoline and corn-based ethanol. Of the 178,000 service stations nationwide, less than 200 sell ethanol, according to environmental groups.

According to the Lundberg Survey of about 8,000 gas stations nationwide, the average price fr a gallon of gasoline, including all grades and taxes, was $1.46 on Friday, down 4.73 cents per gallon since July 13,

Gas prices have tumbled since peaking on May 18 at $1.76. But that trend may not continue.

"After a brief period of shortage in the Spring refiners over-compensated and produced a glut," Trilby Lundberg told CBS Radio News. "We are using up that glut of gasoline, and that is why, although prices fell again, they might start rising soon."

Guzzling Gas

CBS News Correspondent Cynthia Bowers reports we've been bingeing on gas this summer.

Wholesale prices hit bottom in some locations and are on the rise, and prices at the pump rose in a few areas of the Midwest. In Chicago, the price of self-serve regular gas went up 5 cents in the past two weeks, from $1.40 to $1.45 a gallon.

However, Lundberg said prices will continue to fall slightly in many locations in the short-term, and when they do creep back up the increases will not be dramatic.

"There were all these scare stories about $3 gasoline. That was alarmist, silly malarkey from the very beginning," Lundberg said.

Prices remain significantly lower than they were a year ago. On July 21, 2000, the average price for a gallon of gas, including all grades and taxes, was $1.61, Lundberg said.

The national weighted average price of gasoline, including taxes, at self-serve pumps Friday was about $1.42 a gallon for regular unleaded, $1.42 for midgrade and $1.61 for premium. At full-serve pumps, the average was about $1.86 for regular unleaded, $1.95 for midgrade and $2.03 for premium.