Federal Agency Allows Summer Sales of Higher Ethanol Gas to Combat Rising Prices

Wednesday, March 25, 2026 at 3:37 PM

The Environmental Protection Agency announced Wednesday it will permit temporary summer sales of E15 ethanol fuel blend to help reduce gas prices amid rising costs from the Iran conflict. The decision reverses typical summer restrictions but faces criticism over potential health and economic trade-offs.

Federal environmental regulators announced Wednesday they will permit temporary summer sales of a higher ethanol gasoline blend as gas prices continue climbing due to the ongoing Iran conflict.

E15 fuel sales are normally halted during summer months due to concerns about increased air pollution during warmer weather.

“President Trump is unleashing American Energy Dominance, and today’s action will directly lower prices at the pump and gives a clear demand signal to our domestic biofuels producers,” Agriculture Secretary Brooke Rollins stated.

Summer exemptions for E15 have become routine in recent years, with lawmakers from both major political parties pushing to make the allowance permanent and year-round to reduce fuel costs. Several states already permit such sales.

Kansas Democratic Representative Sharice Davids has successfully obtained emergency E15 exemptions for multiple years from EPA leadership under different presidential administrations. This week, Minnesota Democratic Senator Amy Klobuchar pressed the Trump administration to implement “a no-cost, immediate step” to address escalating domestic fuel expenses during the Iran conflict.

However, some experts question whether the policy change will meaningfully reduce pump prices. Kenneth Gillingham, a Yale School of the Environment professor who researches transportation regulation impacts on pricing, emissions and consumer benefits, noted that E15 isn’t accessible nationwide and many areas lack proper infrastructure or adequate ethanol supplies for expanded usage.

Gillingham warned that E15’s increased corrosive ethanol content poses particular risks to older vehicles, watercraft and recreational off-road vehicles.

University of Minnesota professor Jason Hill, who examines food and energy markets plus environmental impacts, explained that increased corn usage for ethanol production reduces availability for livestock feed. This could result in consumers experiencing lower gas station costs but higher grocery bills.

“I think it’s difficult to see when the ledger’s settled, how this is a benefit for U.S. consumers,” Hill stated.

Hill suggested the announcement primarily targets farmers struggling with elevated diesel equipment costs and fertilizer price increases caused by the Iran conflict. He noted similar previous announcements have served to demonstrate support for “agriculture and those who drive.”

Gillingham emphasized the policy carries costs beyond financial considerations.

“There’s more likely to be ozone issues in the summer and some people will die,” he warned. “It will lead to some earlier heart attacks and it will lead to some earlier respiratory issues that wouldn’t have been the case otherwise.”

While the petroleum industry has typically resisted E15 expansion, citing expensive biofuel blending that increases gasoline costs, American Petroleum Institute vice president Will Hupman endorsed this temporary measure. “By temporarily easing summer fuel requirements, this action helps ensure American consumers continue to have access to affordable, reliable energy,” Hupman said.

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