API, farm groups urge Congress to back year-long E15 sales as prices rise

• E15 is typically banned during summer months due to smog concerns, but could save consumers up to 30 cents per gallon compared to conventional gasoline, according to biofuels groups
• The amendment is supported by the American Petroleum Institute, National Association of Convenience Stores, and National Corn Growers Association, but opposed by refining industry groups citing compliance costs
• U.S. retail gasoline prices averaged $4.06 per gallon as of Friday, driven higher by global supply disruptions from Iran's effective blockade of the Strait of Hormuz following U.S.-Israeli strikes

Summary

Key Development: A coalition of ethanol producers, farmers, and fuel retailers is urging Congress to approve year-round sales of E15 gasoline (15% ethanol blend) as retail gas prices exceed $4 per gallon nationwide.

Legislative Action: An amendment to the Farm Bill, led by Rep. Michelle Fischbach (R-MN) and supported by over 20 lawmakers, would permit—but not mandate—retailers to sell E15 year-round. The House Rules Committee will consider the measure next week. President Trump has indicated he would sign the legislation.

Market Context: U.S. gasoline prices hit $4.06 per gallon as of Friday, surpassing $4 in early April due to global supply disruptions from Iran's blockade of the Strait of Hormuz following U.S.-Israeli strikes. The EPA has issued emergency waivers allowing temporary E15 sales, typically banned in summer months due to smog concerns.

Supporters: The American Petroleum Institute, National Association of Convenience Stores, and National Corn Growers Association back the amendment. Growth Energy estimates year-round E15 could save consumers up to 30 cents per gallon, as ethanol typically costs less than petroleum blendstock.

Opposition: The American Fuel & Petrochemical Manufacturers and other refining groups oppose the expansion, citing additional compliance costs.

Government Response: The White House has attempted to address high fuel costs through emergency crude stockpile releases and a 90-day shipping waiver for oil, fuel, and fertilizer transport.

Implications: The amendment represents a significant policy shift that could provide fuel cost relief during ongoing Middle East tensions while expanding the ethanol market, though it faces resistance from traditional refining interests.