The United States Sees Gasoline Prices Climb Despite EPA Fuel Waivers | energynews. pro
US spot gasoline prices rose sharply year-on-year between March and July 2026, despite a federal waiver program on summer fuel specifications intended to ease price pressure. The US Environmental Protection. . .
US spot gasoline prices rose sharply year-on-year between March and July 2026, despite a federal waiver program on summer fuel specifications intended to ease price pressure. The US Environmental Protection Agency (EPA) granted its first nationwide waiver of the period on March 25, 2026, following consultation with the Department of Energy (DOE), according to its announcements. The increase came asExxonMobil and Chevron unveiled quarterly results boosted by oil prices, a sign of sustained margins across the US oil sector. Regulatory flexibility with limited effectThe lever used by the EPA concerns summer volatility thresholds for fuel, measured by Reid Vapor Pressure (RVP), which are stricter in summer to limit ozone pollution. A waiver normally allows the sale of gasoline with a higher ethanol content and unifies fuel formulations nationwide that refiners must meet, rather than requiring dozens of regional standards. The measure was renewed several times over the period, a sign the administration considered the market tight enough to justify near-continuous extension rather than a one-off action. But this regulatory flexibility does not offset structural supply tensions. According to data from the US Energy Information Administration (EIA), commercial gasoline stocks followed a pronounced downward trajectory over the period, reaching a low point at the very end of the period, at a level well below seasonal norms. This inventory decline coincided with refinery utilization rates that remained high, indicating that the drop in stocks stemmed from sustained export demand rather than a slowdown in production. The Midwest at the center of regional tensionsThe Midwest, corresponding to PADD 2 (Petroleum Administration for Defense District) in EIA nomenclature, illustrates this regional dynamic. Gasoline stocks in the region saw a marked decline during the summer driving season, falling continuously from the end of winter through the heart of spring, with the region approaching floor levels rarely seen in recent years. This stock tension unfolded against a global refined products market already under pressure, asoil jumped to $90. 74 after the escalation between the United States and Iran. Regional dynamics diverged significantly, however. The East Coast, which relies on imports to supplement local production, faced a slowdown in imported cargo arrivals over the period, adding pressure specific to that region. California, which did not adopt the federal waivers and maintains its own fuel specifications under the CARBOB (California Reformulated Gasoline Blendstock for Oxygenate Blending) formulation, along with Northeastern states subject to reformulated gasoline rules, applied the program unevenly, widening the regional gaps observed across the US gasoline market.