The U.S. Environmental Protection Agency authorized an early transition to winter-grade gasoline, effective September 1, to reduce fuel costs and alleviate supply constraints tied to regional conflicts.
The decision allows refiners and distributors to sell gasoline blended with 10% ethanol, a formulation that burns less cleanly than summer blends but costs less to produce. The EPA said the move will increase domestic gasoline supply by hundreds of thousands of barrels per day by waiving low-volatility requirements that typically mandate more expensive blending ingredients during peak ozone season.
U.S. average gasoline prices have remained above $4 per gallon since mid-July, according to the American Automobile Association, roughly $1 higher per gallon than at the start of the Iran conflict. The Energy Department projects elevated prices through year-end, citing the unresolved standoff with Iran and continued restrictions on Strait of Hormuz shipping lanes.
The policy change follows additional measures by the administration to lower fuel expenses, including permitting foreign-flagged vessels to transport oil between U.S. ports and expanding summer sales of E15 gasoline, which contains up to 15% ethanol. EPA Administrator Lee Zeldin stated the decision aligns with efforts to ensure affordable energy for American families.
