07:49 AM EDT, 06/13/2024 (MT Newswires) -- The American Petroleum Institute will file a federal lawsuit on Thursday seeking to block the Environmental Protection Agency's new tailpipe emission regulations that compel automakers to increase the production and sale of electric vehicles to comply with the new standards, Reuters reported.

The trade group, which includes oil giants Exxon Mobil ( XOM ) and Chevron ( CVX ) , claims that the EPA has overstepped its congressional authority with a rule that would phase out most new gasoline-powered and traditional hybrid vehicles from the US market in less than a decade. the report said.

The lawsuit will be filed in the D.C. Circuit Court of Appeals and the API will be joined by the National Corn Growers Association and the American Farm Bureau Federation as co-petitioners, the Reuters report said.

"Today, we are taking action to protect American consumers, US manufacturing workers, and our nation's hard-won energy security from this intrusive government mandate," API Senior Vice President and General Counsel Ryan Meyers was quoted as saying.

Under the new EPA rules, the Biden administration projects that EVs will constitute up to 56% of all car sales between 2030 and 2032, according to the report

The API did not immediately respond to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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