EPA allows winter gasoline sales from September 1 to boost U.S. supply

The U.S. Environmental Protection Agency will allow gasoline blended with 10% ethanol, known as E10, to be sold from September 1, ending the summer-blend requirement roughly three weeks early. The Trump administration says the change could increase domestic gasoline supply by hundreds of thousands of barrels per day and lower prices at the pump. AAA data showed the national average gasoline price at $4.1044 per gallon on Thursday, while California averaged $5.5885. Diesel averaged $5.5477 nationally and $7.0388 in California, with the diesel crack spread having earlier reached $102 per barrel. GasBuddy analyst Patrick De Haan estimated relief of 10 to 25 cents per gallon, with the largest cities using the most stringent blends likely to see the biggest benefit. Summer gasoline has lower Reid Vapor Pressure to limit evaporation, smog and pollution in hot weather, while winter gasoline generally has higher volatility and can be cheaper to produce. The move comes amid tensions with Iran and continued disruption around the Strait of Hormuz, while California Gov. Gavin Newsom criticized President Donald Trump over elevated fuel costs. The waiver may ease regional supply tightness and refinery blending costs, but analysts say it is unlikely to reverse broader oil-price pressure if geopolitical risks and shipping disruptions persist.

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