US to end summer blend gasoline requirement early in attempt to lower prices
XLE•Administration and analyst reaction
U.S. Energy Secretary Chris Wright, who met with oil refiners in Midland, Texas, this week, said that the administration would take steps over the coming days to control fuel prices.
Exactly how much of an impact the move would have on gasoline prices was uncertain but an analyst said it could help.
"Hastening winter-grade gasoline into supply via an RVP waiver is legally defensible, can be done with the stroke of a pen, would engender minimal political blowback, and, most importantly, would genuinely help to alleviate a supply crunch and offer immediate pump price relief," Rapid Energy said in a note to clients on Thursday.
Gasoline prices and political pressure
U.S. gasoline prices have risen due to the U.S.-Israeli war on Iran. On Thursday pump prices for regular gasoline averaged $4.10 per gallon, up from about $3.13 a gallon a year ago, according to AAA motor club data.
High pump prices are a vulnerability for U.S. President Donald Trump and fellow Republicans as they try to retain control of both chambers of Congress in the November midterm elections.
State waivers in Texas, Arizona and California
The EPA said it also waived state-level controls on gasoline in Texas, Arizona and California that extend beyond September 15, for the maximum period allowed of 20 days.
"As the EPA has done all summer, we will be monitoring gasoline supplies in those states and will be prepared to extend the waiver through a subsequent action as long as necessary to ensure adequate supplies of gasoline to consumers," the EPA said.
