For the third time this year, the U.S. Environmental Protection Agency (EPA) has extended its emergency fuel waiver to lessen the burden of rising petrol prices amid supply interruptions brought on by international tensions and decreased oil output. The waiver allows the continued sale of gasoline blended with 15% ethanol, providing much-needed relief to consumers and preventing further price hikes.
The EPA's second waiver, which addresses regions lacking a Reformulated Gasoline Programme and was initially scheduled to expire on 20 July, has now been extended until 9 August. The EPA is taking preemptive measures to lessen the effects of the ongoing energy crisis by overturning federal laws that forbid the sale of 15% ethanol-blend fuel during the summer due to ozone pollution concerns.
The recent global market disruptions, spurred by geopolitical tensions such as the war in Ukraine, have significantly impacted the supply and distribution of crude oil and petroleum products. Also, an unexpected reduction in crude oil output by OPEC+ member countries has further constrained the market, leading to a noticeable decline in gasoline stocks in the United States since early 2022.
The extension of the fuel waiver comes as a lifeline for consumers, with the national average gas price for regular gasoline soaring to $3.580 per gallon on July 20. In contrast, the average price for a 15% ethanol blend stood at $2.957 per gallon, offering a more affordable option at the pump. The benefits are even more pronounced when comparing to last year's average price of $4.467 per gallon for regular gasoline.
EPA Administrator Michael Regan emphasized that the waiver extension will not cause significant changes in air pollution levels. Instead, it serves as a strategic measure to ensure continued fuel availability during a time when total U.S. gasoline stocks remain critically low.
By authorizing the continued sale of gasoline-blends with up to 15% ethanol, the EPA has taken a decisive step towards supporting consumers and alleviating pressures on the fuel supply chain. As global liquid-fuel consumption continues to rise, these measures play a crucial role in stabilizing the market and providing respite to consumers facing the economic challenges of fluctuating gas prices.
Source : wisconsinagconnection