Global gasoline consumption reached approximately 28 million barrels per day in 2025, surpassing the International Energy Agency’s prediction that demand peaked in 2019, according to S&P Global Commodity Insights.
The resilience comes as major economies roll back policies designed to accelerate the transition to cleaner vehicles. The United States and European Union announced significant regulatory changes in recent weeks that reduce pressure on automakers to phase out combustion engines.
President Donald Trump announced on December 3 that the administration would lower Corporate Average Fuel Economy standards for new vehicles. The revised standards target a fleet-wide average of 34.5 miles per gallon by 2031, down from the Biden administration’s requirement of approximately 50 miles per gallon.
The changes will save automakers more than $35 billion in technology costs through 2031, though fuel costs for drivers are expected to rise by up to $185 billion through 2050, according to the National Highway Traffic Safety Administration.
The European Commission proposed on December 16 to weaken its planned prohibition on new gasoline and diesel vehicle sales. Automakers must meet zero-emission targets for only 90% of new vehicles by 2035, down from the original 100% requirement.
The policy allows manufacturers to continue selling plug-in hybrid vehicles and some internal combustion engine cars after 2035. Seven EU member states — Bulgaria, the Czech Republic, Germany, Hungary, Italy, Poland, and Slovakia — lobbied for the changes, citing concerns about charging infrastructure and competitiveness.
Electric vehicle adoption has progressed more slowly than anticipated. EVs accounted for approximately 8% of new vehicle sales in the United States in 2024 and roughly 16% in Europe through September 2025.
Industry executives pointed to high vehicle costs and insufficient charging infrastructure as barriers. Ford announced on December 16 that it would take $19.5 billion in charges related to restructuring its electric vehicle operations.
Read: Ford Scraps Electric F-150 Lightning in $19.5 Billion EV Retreat
Critics argue the rollbacks undermine climate goals. “In one stroke, Trump is worsening three of our nation’s most vexing problems: the thirst for oil, high gas pump costs and global warming,” said Dan Becker, director of the Safe Climate Transport Campaign for the Center for Biological Diversity.
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
