Trump to ease smog rules on summer fuel to bring down prices, sources say

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Gasoline and diesel prices are displayed at a gas station in Atlanta, Georgia.

Oil and fuel prices have surged as the Iran conflict has disrupted global supply.

PHOTO: REUTERS

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HOUSTON – The Trump administration is expected to announce as soon as March 25 that it will temporarily lift federal smog-cutting restrictions on summer-blend fuel to curb rising energy prices stemming from the war on Iran, according to two sources familiar with the matter.

The move would make fuel cheaper by not forcing refiners and retailers to switch to more costly summer blends.

Retailers would also be allowed to continue selling fuel blended with 15 per cent 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 US average price for a gallon of regular fuel recently climbed above US$3.97 (S$5), up sharply from below US$3 earlier in 2026, according to data from the American Automobile Association.

The US normally switches to summer fuel blends to reduce air pollution. These blends have lower volatility, limiting evaporation that can contribute to smog in warmer weather.

Oil and fuel prices have surged as the Iran conflict has disrupted global supply.

US crude topped US$100 a barrel for the first time since the 2022 Russia-Ukraine shock.

In a statement, the US 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. REUTERS

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