This is really more a political battle between the auto-industry and the petro-chemical industry. Higher gas economy and lower vehicle emissions pretty much go hand in hand and in order to achieve fuel economy goals the auto industry will need less sulfur in the fuel. The current standard is 30 ppm and the new standard will be 10 ppm. Certainly the public health aspect of the new regulation is relevant and significant, particularly in urban areas, but the real driver is the politics and influence of the auto-industry meeting the publics demands for greater fuel efficiency. The simple fact of this issue is that lower emission catalytic technology cannot either be implemented or developed further without lower sulfur content in gasoline.
At $4/gallon my guess is that the oil companies aren't going to be getting a whole lot of love from anyone on this issue.