Trump Administration Authorizes Early Shift to Winter Gasoline Blends

The Federal government of the United States is authorizing an early transition to wintertime gasoline blends starting September 1 to lower fuel costs and address supply concerns linked to the war in Iran. The United States Environmental Protection Agency is relaxing summertime requirements to allow the sale of gasoline blended with 10% ethanol, which evaporates faster than summer blends but is cheaper to produce.

Coordinated with the United States Department of Energy, the move aims to increase the domestic gasoline supply by hundreds of thousands of barrels per day. This action follows a period where average gasoline prices exceeded $4 per gallon since mid-July, marking the highest recorded prices for this time of year.

While the federal waiver permits refiners to switch to these dirtier-burning fuels, the actual impact on pump prices may depend on the speed at which individual states adjust their own gasoline requirements. The United States Department of Energy forecasts that fuel prices will remain high through the end of the year.