White House Considers Waiving Gasoline Requirements Amidst Surging Prices

Sky-high fuel prices have the Biden administration considering waiving environmental rules aimed at reducing smog in the summer. Already having lifted the restriction of summer sales of E15 ethanol blends, a new consideration would waive requirements of all grades of gasoline. Gas prices are $1 higher than they were one year ago, and one J.P. Morgan analyst predicts prices could climb to $6.20/gallon by August.

The situation is worse for diesel users, where shortages threaten much of the East Coast. The cost of ultra-low-sulfur diesel climbed 27% in the 10 weeks following Russia’s invasion of Ukraine. The national cost average set a nominal record at $5.62/gallon, according to the U.S. Energy Information Administration. The White House is also considering a release of diesel fuel from federal reserves and even a curb on exports to help soften prices.

Read more on fuel costs and supplies here.