The fuel economy of new cars and trucks is up in 2008, but the government said an increase in sales of smaller vehicles because of high gas prices may push fuel-efficiency numbers even higher.

The Environmental Protection Agency said Friday that the average fuel economy of cars and trucks was 20.8 miles per gallon in 2008, up 0.2 mpg compared with 2007 model year vehicles.

"This report shows we’re driving in the right direction," said EPA Administrator Stephen L. Johnson. "Increased fuel efficiency is not only a smart consumer choice, but also a smart environmental choice."

The estimates were based on sales projections made before gas prices rose, so the EPA expects final fuel-efficiency numbers to be higher.

The EPA's annual report showed that average fuel economy has improved each year beginning in 2005, and is now the highest since 1993.

Honda led the way with a projected 23.6 mpg, followed by Toyota with 23.4 mpg. Hyundai was third with 22.6 mpg.

Among domestic automakers, General Motors was at 19.6 mpg, Ford had an estimated 19 mpg and Chrysler came in at 18.9 mpg.