Biden’s survey numbers slumped under the weight of higher consumer costs. High inflation is seen as a major obstacle as we approach the midterm elections in November.
The decision is likely to increase demand for corn-based ethanol, a win for the US corn lobby and a setback for oil refineries, which see ethanol as competition.
The measure will allow Americans to continue purchasing E15, a gasoline that uses a 15 percent ethanol blend from June 1 to September 15. A senior official told reporters that the E15 is only 10 cents cheaper and less “energy intensive” on average, meaning drivers will have to buy more fuel but will still help cut costs. “These savings may increase, especially in the summer, when fuel use increases and the supply emergency caused by Russian President Vladimir Putin’s aggression continues,” the official said.
White House spokeswoman Jen Psaki later confirmed the move to reporters aboard Air Force One, the Presidential plane bound for Iowa, where Biden plans to make an announcement.
The decision came after several weeks of internal debate at the White House that pitted environmental advocates such as Gina McCarthy against former Iowa governor, Agriculture Secretary Tom Vilsack.
The ban on E15 use in the summer was imposed over concerns that it contributes to smoke formation in hot weather. But research has shown that the 15 percent blend may not increase fog compared to the more common 10 percent blends sold year-round.
The Russian invasion of Ukraine and the ensuing sanctions and boycotts pushed retail gasoline prices to record levels. This is seen as a weakness for the Democrat in the November Congressional elections.
Biden announced last month that he would launch 180 million barrels of crude oil, including 1 million barrels per day, from America’s Strategic Petroleum Reserve starting May.