US Eases Gasoline Rules Amid Rising Fuel Costs
The US Environmental Protection Agency has authorized an early switch to cheaper winter-grade gasoline in response to rising fuel costs, which have averaged above $4 per gallon since mid-July. According to AAA, this is roughly $1 higher than when the Iran war began and the highest Americans have ever paid at this time of year.
The waiver allows sales of gasoline blended with 10% ethanol to begin on September 1, rather than waiting for the normal mid-September seasonal transition. This move could add hundreds of thousands of barrels per day to domestic gasoline supply, providing some relief at the pump.
Treasury Secretary Scott Bessent has promised 'the toughest sanctions in history' against Iran, which may have contributed to the recent price jump. However, oil traders remain skeptical that tougher sanctions on an oil producer during a six-month war are inherently bearish.