California Eases Fuel Rules to Curb Gas Prices

California Governor Gavin Newsom has signed Senate Bill 795 into law, allowing the sale of E15 gasoline blend containing 15% ethanol in the state. This move aims to reduce gasoline costs in California, which have been skyrocketing due to various factors.

The approval of E15 comes as Congress weighs legislation to permit year-round sales nationwide. The issue has gained urgency after the US war with Iran rattled global oil markets, pushing up fuel prices and raising concerns about crude supply disruptions.

Ethanol producers and corn growers are expected to benefit from this change, with an estimated 650 million gallons of annual ethanol demand in California. Eric McAfee, CEO of Aemetis, a renewable fuels producer, estimates that the E15 blend will result in significant cost savings compared to gasoline in California.

The average gasoline price in California was hovering near record levels at $6.14 per gallon on Sunday, while the national average stood at $4.44 per gallon, according to GasBuddy data. The Renewable Fuels Association predicts that E15 could lower retail gasoline prices by roughly 20 cents per gallon and save California drivers at least $2.7 billion annually.