"Catch Oil Prices" Biden Temporarily Allows Sale of High-Ethanol Gasoline

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden has unveiled additional measures, including temporarily allowing the sale of high-ethanol gasoline, to curb soaring oil prices.

On the 12th (local time), the White House announced that it will permit the sale of gasoline with an ethanol content increased to 15% this summer to stabilize fuel prices that have surged since Russia's invasion of Ukraine. In this regard, President Biden visited a biofuel plant located in Iowa, the main corn-producing region used as raw material for ethanol, on the same day.

Most gasoline sold in the U.S. contains about 10% ethanol. The so-called E15, which has an ethanol content raised to 15%, has been banned from sale during the summer months from June 1 to September 15 due to concerns that its use in hot weather could worsen smog. However, this measure allows its sale this summer.

The White House stated that E15 is currently sold at over 2,300 gas stations across about 30 states and estimated that this measure will suppress fuel prices by about 10 cents per gallon.

On the same day, the May West Texas Intermediate (WTI) crude oil price on the New York Mercantile Exchange closed at $100.60 per barrel, up $6.31 (6.7%) from the previous session.

Meanwhile, the U.S. is currently experiencing inflation at a 40-year high. The Consumer Price Index (CPI) for March, released by the Department of Labor on the same day, surged 8.5% compared to the same month last year. This is the largest increase in 40 years since December 1981. In particular, energy prices soared 11% month-over-month and 32% year-over-year due to the impact of the Ukraine invasion.