NEW YORK, April 24 (Reuters) - Groups representing ethanol producers, farmers, and fuel retailers urged Congress on Thursday to allow gas stations to sell higher-ethanol gasoline blends year-round to combat
the higher pump prices that have persisted since the start of the war in Iran.
The groups are supporting an amendment to the omnibus Farm Bill that would allow, but not require, fuel retailers to offer gasoline that contains 15% ethanol for sale nationwide on a year-round basis. That blend, known as E15, is typically barred during summer months due to smog concerns, though the Trump Administration has temporarily waived that restriction to try to bring down the cost of retail gasoline that has surged to more than $4 a gallon, a pain point for low- and middle-income consumers.
The amendment was submitted to the House Committee on Rules by a group of more than 20 lawmakers, led by Representative Michelle Fischbach, a Republican from Minnesota on Wednesday. That committee is set to consider the legislation next week as part of the Farm Bill, the most important piece of agricultural legislation that is brought up every five years.
The Environmental Protection Agency, using emergency waivers, has allowed fuel retailers to sell E15 since late March. Prices have steadily marched higher due to a global energy supply crunch caused by Iran's effective blockade of the crucial Strait of Hormuz following U.S.-Israeli strikes on that nation, with retail U.S. gasoline surpassing $4 a gallon in early April.
As of Friday, the average price nationwide was $4.06 per gallon. With gasoline futures continuing to rise, motorists could feel more pain in coming weeks. E15 is typically cheaper than conventional gasoline because ethanol usually costs less than petroleum blendstock.
“Maintaining access to E15 year-round empowers consumers at the pump with more options, particularly during periods of tight supply and high fuel costs, while allowing refiners and retailers to meet the demands of the market,” the organizations including the American Petroleum Institute, the National Association of Convenience Stores and the National Corn Growers Association wrote in a letter addressed to members of Congress on Thursday.
President Donald Trump has previously said he supports year‑round E15 sales and would sign legislation approving them without delay.
Jake Barron, communications director at biofuels group Growth Energy, said year‑round E15 sales could save consumers up to 30 cents a gallon.
Refining industry groups, including the American Fuel & Petrochemical Manufacturers, have opposed the move citing additional compliance costs.
The White House has tried various moves to limit the economic fallout of the surge in global oil prices, including a large release of U.S. emergency crude stockpiles and the extension of a 90‑day shipping waiver to ease transport of oil, fuel and fertilizer.
(Reporting by Siddharth Cavale in New York)
