API: Smog controls cost 25 cents a gallon

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WASHINGTON, Jan. 31 (UPI) -- The American Petroleum Institute said new fuel regulations backed by the Environmental Protection Agency would lead to higher gasoline prices.

The EPA sent recommendations to cut sulfur levels from gasoline and strengthen smog controls for new vehicles to the Office of Management and Budget.

API Downstream Director Bob Greco said the proposals would make gasoline as much as 25 cents more expensive per gallon.

"Pump prices are still high and this is clearly not the time to add burdensome and unnecessary regulations on gasoline," he said in a statement.

He argued the new proposal would result in a net increase in greenhouse gas emissions because of the use of equipment needed to comply with the requirements.

Luke Tonachel, a vehicles analyst at the Natural Resources Defense Council, writes that he's not surprised by the API's reaction. He said rival studies show the EPA's recommendations would cost less than a penny per gallon to implement.

"On the other hand, the pollution reductions achieved by the standard result in huge health benefits, estimated at over $5 billion per year by 2020 and over $10 billion per year by 2030," he states.

Motor group AAA reports the average price for a gallon of regular unleaded gasoline Thursday was $3.42, up 13 cents from last month but about the same year-on-year.