President Joe Biden will announce on Tuesday another move to try to reduce prices for drivers who have been paying too much to fill their tanks: increase the availability of biofuels.
During a visit to the ethanol industry in Iowa, Biden will announce management plans to allow a 15% ethanol blend of petrol to be sold in the summer, according to senior management officials who spoke on condition of anonymity.
The compound, called E15, could cost 10 cents per liter less than the 2,300 petrol stations it sells, officials said.
Ordinary gas is valued at $ 4.11 a liter compared to $ 2.86 last year, according to AAA, and Biden is under political pressure to show that he is doing his best to alleviate the pain at the pump price.
White House on oil companies: Stop living on recorded profits and lower gas prices
Inflation has risen sharply in the rise of oil prices
His announcement came on the same day as the Department of Labor said consumer prices had risen 8.5% since last March, the fastest pace since December 1981. Inflation has now risen for 40 years for five consecutive months.
Petrol prices, which increased by 18.1% from March 2021 to March 2022, were the main reasons for inflation.
White House press secretary Jen Psaki is expected to say on Monday that officials expect inflation to "rise sharply" due to rising oil prices after Russia invaded Ukraine.
"We are taking many steps to reduce the price of gas in order to achieve a long-term, clean energy economy," he said.
Biden had earlier announced that the US would try to boost oil production and use its reserves to reduce fuel prices, which increased after Russia invaded Ukraine, prompting a ban on Russian oil purchases.
Democrats have called the rise "Putin's price rise" while Republicans say Biden could do more to boost domestic oil production.
Iowa Republican Party greets Biden with a billboard accusing him of high fuel prices.
"Joe did that," said the ad.
Biofuels are limited, but the EPA may allow them to be discontinued
Administration officials said the move by Biden on Tuesday would increase the use of biofuels grown at home, reducing dependence on fossil fuels.
Although almost all petrol in the U.S. contains 10% ethanol, access to E15 is reduced annually in some provinces from June 1 to September 15 because it is believed to have an impact on smoke during warmer weather.
The EPA has ruled that the removal of the limit will not have a significant impact on the environment as most of the E15 garages do not exist in areas with air quality problems, according to the chief executive officer.
The EPA is not expected to take effect until June, when it will determine whether there is still a national fuel supply emergency. The agency may offer a 20-day suspension increase.