Newsom Signs Bill Allowing Higher Ethanol Blends in California Gasoline

California drivers may soon see a slight reprieve from soaring gas prices as Governor Gavin Newsom signed Senate Bill 795 into law, allowing for an increase in ethanol blends in gasoline. The legislation will permit E15, a fuel mix containing 15% ethanol, to be sold in the state. This move is expected to reduce costs, with fuel analysts pointing out that the spot price for petroleum in Los Angeles stood at $4.27 per gallon while the spot price for ethanol came to $2.49, a difference of almost $2.

According to estimates, California drivers could save 20 cents per gallon by switching from E10 to E15 fuel, based on a study conducted two years ago by economists at UC Berkeley and the U.S. Naval Academy, sponsored by the Renewable Fuels Association. However, it's likely that independent retailers will be the first to adopt E15, followed by major brands.

Despite the expected benefits of E15, drivers may not notice a significant difference in prices, as gas prices have skyrocketed due to various factors, including the ongoing conflict with Iran and its impact on oil supplies. The average price for a gallon of regular in California on Monday was $6.17, the highest of any state.