University of California Transportation Center

Cars manufactured in the United States have become increasingly fuel efficient in the past two decades, and many people attribute that to rising gasoline prices. From 1975 to 1985, following the 1973 oil embargo, the fuel efficiency of new cars increased by more than 60 percent. What's surprising, however, is that fuel efficiency continued to remain high even when gasoline prices declined, even falling below prices in 1970. Why didn't we see a return of the gas guzzlers?