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EPA Acts to Curb Surging Fuel Costs
The Environmental Protection Agency (EPA) announced Wednesday it will temporarily suspend federal anti-smog restrictions on summer gasoline blends in an effort to combat skyrocketing fuel prices driven by the ongoing conflict with Iran .
The emergency action allows nationwide sales of E15 gasoline—a blend containing 15% ethanol—which is typically prohibited from June 1 to September 15 in about half the country due to concerns that higher ethanol content contributes to smog formation in warmer weather .
The waiver also removes federal barriers to selling E10 (10% ethanol) gasoline across the country and pauses enforcement of certain state fuel standards .
“We are fortifying the domestic gasoline supply chain and providing Americans relief at the pumps ahead of the summer driving season,” said EPA Administrator Lee Zeldin, announcing the move at CERAWeek, a major energy conference in Houston .
The waiver takes effect on May 1, 2026, and will initially remain in place for 20 days through May 20—the maximum allowed under the Clean Air Act—though the EPA signaled readiness to extend the emergency measure if needed .
The Price Crisis Behind the Move
The administration’s action comes as American drivers face the highest gasoline prices since the 2022 Russian invasion of Ukraine. According to AAA, the national average retail price for regular gasoline reached $3.98 per gallon on Wednesday, a surge of more than 33% since the U.S.-Israeli campaign against Iran began on February 28 .
Diesel prices have been hit even harder, climbing over 40% to $5.37 per gallon—a particularly troubling trend given diesel’s critical role in manufacturing, freight transport, and agriculture .
The price spike stems directly from the closure of the Strait of Hormuz, a critical waterway through which approximately 20% of the world’s oil supply normally passes. The conflict has effectively halted commercial traffic, triggering panic in global energy markets .
What Impact Will This Have?
Analysts estimate the E15 waiver could reduce retail gasoline prices by roughly 10 to 25 cents per gallon in some regions . However, the relief would only partially offset the $1-per-gallon increase that has occurred in the past month.
The move represents one of several strategies the administration has deployed to stabilize energy markets, including:
Notably, the E15 waiver has become increasingly common across administrations. The Biden administration issued the same waiver each summer following Russia’s invasion of Ukraine, and the Trump administration issued it last summer as well . Some states—including Iowa, Illinois, Minnesota, Nebraska, Missouri, Wisconsin, and most of South Dakota—already allow year-round E15 sales .
Critics Raise Concerns
Despite the administration’s optimism, experts caution that the impact may be limited. Kenneth Gillingham, a professor at Yale School of the Environment, noted that E15 is not available in all states, and some regions lack the infrastructure or ethanol supply to ramp up use quickly .
Others point to hidden costs. Jason Hill, a University of Minnesota professor studying food and energy markets, warned that diverting more corn to ethanol production could raise grocery prices as less corn becomes available for animal feed .
There are also environmental tradeoffs. “There’s more likely to be ozone issues in the summer and some people will die. It will lead to some earlier heart attacks and some earlier respiratory issues that wouldn’t have been the case otherwise,” Gillingham said .
The oil industry has generally opposed ethanol expansion, but the American Petroleum Institute supported this move, with Vice President Will Hupman stating it “helps ensure American consumers continue to have access to affordable, reliable energy” .
Political Implications
The fuel crisis carries significant political stakes. A Yahoo/YouGov poll conducted March 12-16 found that 66% of Americans disapprove of President Trump’s handling of fuel costs, and 80% believe gas prices are too high .
The same survey showed 60% of those expecting prices to rise further blame Trump for the increase—far more than those who blame Iran (13%) or oil companies (12%) .
With the summer driving season approaching and the conflict showing no signs of resolution, the administration appears prepared to take additional steps. Energy Secretary Chris Wright hinted at potential plans to release additional diesel supplies, stating, “We do have some ideas about diesel” .
