EPA waives summer-blend rule early, aims to cut gas prices amid Iran war

The EPA is issuing a temporary emergency fuel waiver to boost domestic gasoline supply as pump prices climb during the Iran war.

Announced Thursday, the waiver lets stations nationwide sell a single 9% to 15% ethanol blend through Aug. 31, then drops federal evaporation-rate limits entirely from Sept. 1. That effectively ends the summer-blend requirement two weeks early, letting refiners switch to winter-grade gasoline before the control season closes Sept. 15.

The EPA, working with the Energy Department, ruled the waiver in the public interest under the Clean Air Act, citing extreme and unusual fuel supply conditions nationwide as disrupted tanker traffic in the Strait of Hormuz squeezes supply.

The national average hit $4.10 a gallon Thursday, according to AAA, up from roughly $2.98 before the war began Feb. 28. Prices peaked at $4.56 in May. Crude remains near $80 a barrel, pushing up diesel and jet fuel costs and feeding broader inflation.

This is the seventh renewal since March 25. The agency said it is prepared to extend the waiver as long as necessary.