EPA Approves E15 Gasoline to Tackle 30% Spike in Gas Prices

EPA Approves E15 Gasoline to Tackle 30% Spike in Gas Prices
Source: CBS News

E15 gasoline moved to the center of U.S. fuel policy this week, and it happened fast. The Trump administration issued an emergency EPA waiver on March 25, 2026, temporarily lifting summer restrictions on E15 gasoline — a move tied directly to the Iran war and the spike in gas prices that came with it. At the time of writing, the national average sits at $3.98 per gallon, up more than a dollar in a single month. For anyone wondering why gas prices are rising so sharply right now, the short answer is the Strait of Hormuz — effectively closed since the conflict began — cutting off around 20 percent of global oil supply.

Also Read: Gas Prices Are Rising Everywhere Since Iran Conflict, But Unevenly

E15 Gasoline Price And Gas Prices Rising Under Trump

E15 Gasoline Price And Gas Prices Rising Under Trump
Source: RFA

Why Gas Prices Are Rising Right Now

Gas prices rising more than 30 percent since the conflict started, according to AAA data, and diesel is up more than 40 percent to $5.37 per gallon right now. California drivers are paying $5.83 a gallon, while Oklahoma and Kansas sit near the bottom at around $3.27 and $3.28 respectively. The E15 gasoline Trump administration response came, in part, because of how fast this all escalated — war started, Hormuz closed, and gas prices rising at the pump within days.

California drivers are paying $5.83 a gallon
Source: Forbes Advisor,
AAA; Data as of March 25, 2026

What the E15 Gasoline Trump Waiver Actually Does

E15 gasoline mixes in 15 percent ethanol, which also makes it typically cheaper — the Renewable Fuels Association puts the savings at somewhere between 10 and 40 cents per gallon compared to standard fuel. Under the Clean Air Act, the EPA restricts E15 gasoline sales in roughly half the country from June through September, because of smog concerns. The waiver runs from May 1 through May 20, and the EPA can extend it as needed. The agency also issued a separate waiver for E10, the standard blend. The E15 gasoline price advantage, combined with the ethanol lobby’s long push to make this permanent, made this one of the easier calls for the administration.

EPA Administrator Lee Zeldin stated:

“EPA waivers will work to prevent disruption in America’s fuel supply by keeping E15 and E10 on the market and giving Americans more fuel options.”

Agriculture Secretary Brooke Rollins said:

“President Trump is unleashing American Energy Dominance, and today’s action will directly lower prices at the pump and gives a clear demand signal to our domestic biofuels producers.”

Not A Long-Term Fix

Shell Gasoline Prices Surge Globally
Sources: Watcher.Guru

With the Strait of Hormuz still largely blocked, the waiver will very likely be extended past May 20. The E15 gasoline Trump policy also drew bipartisan support — Sen. Amy Klobuchar of Minnesota had already urged the administration to act, while the Renewable Fuels Association praised the move publicly. Several lawmakers flagged the obvious limitation right away, though.

Sen. Deb Fischer (R-Neb.) stated:

“This is not a long-term solution, and it is far past time for Congress to make this permanent.”

Brian Jennings, CEO of the American Coalition for Ethanol, had this to say:

“If ever there were justifiable conditions to merit an emergency waiver for E15, it would be now as fuel prices have skyrocketed from war with Iran and a historical oil market disruption in the Strait of Hormuz.”

Iran's oil infrastructure map
Iran’s oil infrastructure — oil fields, pipelines, terminals, and the Strait of Hormuz
Source: S&P Global Energy / CNN

The E15 gasoline price debate isn’t going anywhere. Everyone understands why gas prices are rising — the question now is whether Congress steps in and makes the fix permanent, or whether the administration just keeps issuing waivers each summer.