US Gasoline Prices Approaching $4! Trump Administration Rolls Out New Move: Exempting Summer Gasoline Sales Restrictions

On Wednesday, local time, the Trump administration announced a temporary waiver of summer gasoline sales restrictions aimed at easing the surge in fuel prices caused by the Iran conflict.

The Environmental Protection Agency (EPA) lifted restrictions on the sale of E15 gasoline (a fuel blended with 15% ethanol), allowing refineries and retailers to sell E15 gasoline during the summer.

To reduce air pollution, about half of the regions in the U.S. prohibit the sale of E15 gasoline from June to September. Higher ethanol content fuels are more prone to evaporation in hot weather, contributing to air pollution.

The EPA also stated that all federal barriers preventing the nationwide sale of E10 gasoline (containing 10% ethanol) have been removed.

Additionally, the EPA paused federal enforcement of certain state fuel standards, allowing the production and distribution of gasoline with ethanol content between 9% and 15%.

The EPA said these exemptions will take effect on May 1, 2026, and last until May 20. This 20-day window is the maximum allowed under the Clean Air Act (CAA).

The EPA also indicated it will continue to monitor fuel supply in cooperation with industry and federal partners. If necessary, the agency is prepared to extend this emergency waiver.

EPA Administrator Lee Zeldin, speaking at the S&P Global CERAWeek Energy Conference in Houston, Texas, said, “EPA’s waiver will ensure the supply of E15 and E10 gasoline in the market, providing more fuel options for Americans and preventing disruptions in the U.S. fuel supply.”

This is the latest effort by the White House to curb rising oil prices caused by the Iran conflict. After the outbreak of the U.S.-Iran war, Iran effectively blocked the crucial Strait of Hormuz, cutting off global oil supplies and driving energy prices higher.

The Trump administration had already taken several measures to stabilize oil prices, including releasing 173 million barrels from the Strategic Petroleum Reserve, waiving the Jones Act to allow foreign ships to transport fuel between U.S. ports, lifting sanctions on Russian oil, and other actions.

U.S. gasoline prices approach $4 per gallon

According to AAA, since the conflict between the U.S. and Iran erupted, global oil supply disruptions have caused U.S. gasoline prices to increase by over 30%, reaching $3.98 per gallon. This is the highest level since 2022, when the Russia-Ukraine conflict shook global energy markets.

Diesel prices have surged over 40%, reaching $5.37 per gallon. Diesel is widely used in manufacturing and freight industries, and economists warn that rising diesel prices could slow global economic activity.

U.S. Energy Secretary Chris Wray said Monday that the government plans to increase diesel supplies.

“We do have some plans for diesel, to put additional diesel into the market. I believe we will see related measures implemented soon,” Wray said in an interview.

(Source: Caixin)