The White House is considering waiving U.S. gasoline environmental rules aimed at reducing summertime smog, hoping the waiver will combat rising pump prices, according to three sources involved in the discussions, said Reuters.
The Biden administration is considering waiving U.S. gasoline environmental rules aimed at reducing summertime smog, hoping the waiver will combat rising pump prices, according to three sources involved in the discussions.
Refiners and blenders are required to avoid lower-cost components like butane in summer gasoline, but the White House is weighing suspending that rule to help lower fuel costs. The components help elevate gasoline's Reid vapor pressure, or RVP, which contributes to smog at higher levels, particularly in the hot summer months.
President Joe Biden's administration has already lifted the requirement for summer sales of E15, a lower-price, high ethanol gasoline. The waiver under consideration would apply to all grades of gasoline, the sources said. No final decision has been made, they said.
The White House did not immediately respond to request for comment. Outside groups, particularly governors, have been lobbying the White House to issue the waiver. Biden has made fighting inflation and high pump prices the top priority ahead of congressional elections in November. Republicans seeking to take control of Congress have bludgeoned Democrats with the issue and the White House has adopted an 'everything is on the table' approach to curb the price spike.
U.S. gasoline futures dropped in post-settlement trade by more than 4% to as low as USD3.6314 a gallon, then eased further after Reuters reported the move was under consideration. The price of a gallon of regular gasoline has jumped 50% in the last year, to more than USD4.59 on average nationally, according to the American Automobile Association.
As per MRC, The U.S. House passed a bill on Thursday that allows the U.S. president to issue an energy emergency declaration, making it unlawful for companies to excessively increase gasoline and home fuel prices. The bill must pass the Senate, where it faces an uncertain future, and be signed by President Joe Biden to become law.
As per MRC, the price of Brent crude oil, the world benchmark, has increased in 2022, partly as a result of Russia’s full-scale invasion of Ukraine. In addition, a strong U.S. dollar means that countries that use currencies other than the U.S. dollar pay more as crude oil prices increase.
mrchub.com