By COMFORT OGBONNA
The Trump administration will allow gasoline suppliers to begin selling fuel under less restrictive summer-blend requirements about two weeks earlier than usual, in an effort to increase supplies and ease gasoline prices that have risen sharply in recent months.
The Environmental Protection Agency said Thursday that gasoline containing 10% ethanol, known as E10, can be sold with a higher Reid Vapor Pressure beginning Sept. 1. The change will allow suppliers to transition to fuel with higher volatility before the normal end of the summer gasoline season.
Under existing federal requirements, gasoline with lower volatility is generally required through Sept. 15. The rules are designed to reduce fuel evaporation during hot weather, limiting emissions that can contribute to air pollution and smog.
The decision comes as gasoline prices remain significantly higher than they were a year ago, with the conflict involving Iran contributing to disruptions in global energy markets and putting additional pressure on fuel costs.
The average price for regular gasoline reached about $4.10 per gallon Thursday, compared with roughly $3.13 per gallon at the same time last year.
The increase in gasoline prices presents an economic and political challenge for the administration as American consumers face higher costs for transportation and other goods. The issue is also emerging ahead of the November midterm elections, when Republicans will seek to maintain control of Congress.
Energy Secretary Chris Wright met with oil refiners in Midland, Texas, earlier this week as the administration considered measures to increase fuel availability and reduce pressure on consumers.
The EPA also announced temporary waivers affecting gasoline requirements in Texas, Arizona and California. The waivers suspend certain state-level restrictions that extend beyond Sept. 15 for the maximum period currently permitted, which is 20 days.
Federal officials said they will continue monitoring gasoline supplies in those states and could take additional action if necessary to ensure consumers have adequate fuel.
The administration’s decision is intended to address supply concerns by allowing gasoline that would normally become available later in September to enter the market earlier.
Analysts, however, remain divided over how much the move will reduce prices at gas stations.
Supporters of the policy argue that easing gasoline requirements can quickly increase available supplies, particularly in regions where inventories are under pressure. They say the change could provide consumers with some relief without requiring major changes to refinery operations.
Other analysts have warned that the impact may be limited because gasoline prices are determined by several factors, including the cost of crude oil, refinery capacity, transportation expenses, regional fuel requirements and global supply disruptions.
The regional nature of gasoline regulations could also limit the effect of the federal move.
Tom Kloza, chief energy adviser at Gulf Oil, said the impact could be relatively small unless New York and New Jersey also agree to waive their state-level restrictions. Fuel requirements in those states can affect gasoline supplies and prices throughout the broader Northeast market.
The administration’s action therefore represents one part of a larger effort to contain fuel prices as international developments continue to affect global energy markets.
For drivers, the potential benefit will depend on whether additional gasoline supplies reach the market quickly enough to offset higher crude oil and transportation costs.
The EPA said it will continue monitoring gasoline inventories and market conditions and remains prepared to consider further measures if supplies become strained.
The administration is hoping the combination of increased fuel availability and regulatory flexibility will help reduce pressure at the pump as the summer driving season winds down.
However, broader movements in crude oil prices and developments in the Middle East are expected to remain major factors in determining how much Americans ultimately pay for gasoline in the weeks ahead.
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