By Jarrett Renshaw
HOUSTON, March 24 (Reuters) - The Trump administration is expected to announce as soon as Wednesday that it will temporarily lift federal smog-cutting restrictions on summer-blend gasoline to curb rising energy prices stemming from the war on Iran, according to two sources familiar with the matter.
The move would make gasoline cheaper by not forcing refiners and retailers to switch to more costly summer blends. Fuel retailers would also be allowed to continue selling gasoline blended
with 15% ethanol, known as E15, throughout the summer driving season when stricter rules normally limit its use in much of the country.
Analysts say the change could shave several cents per gallon off retail prices and provide relief to both consumers and refiners struggling with tight fuel supplies. The U.S. average price for a gallon of regular gasoline recently climbed above $3.97, up sharply from below $3 earlier this year, according to data from AAA.
The U.S. normally switches to summer gasoline blends to reduce air pollution. These blends have lower volatility, limiting evaporation that can contribute to smog in warmer weather.
Oil and gasoline prices have surged as the Iran conflict has disrupted global supply. U.S. crude topped $100 a barrel for the first time since the 2022 Russia-Ukraine shock.
In a statement, the U.S. Environmental Protection Agency, which oversees the regulations, said it has worked hard to promote American energy dominance and is "monitoring the supply with industry and federal partners."
The expected move is part of a broader effort by the White House to contain the economic and political fallout from rising energy costs as peak summer driving season approaches.
(Reporting by Jarrett Renshaw; Editing by Lisa Shumkaer)
