With inflation at a 40-year high, President Joe Biden journeyed to corn-rich Iowa on Tuesday to announce a modest step aimed at trimming gasoline prices by about a dime a gallon at a limited number of stations by waiving rules that restrict ethanol blending. His action reflects the ways Biden is deploying almost every weapon in his bureaucratic arsenal to ease price pressures, yet the impact appears to be small and uncertain. Inflation has only accelerated in recent months, instead of fading as Biden once promised it would after the recovery from the coronavirus recession following last year’s $1.9 trillion relief package. A government report Tuesday that consumer prices jumped 8.5% in March from a year ago — the worst reading since December 1981 — only deepened the political challenge for Biden and fellow Democrats ahead of this year’s midterm elections. More than half the increase came from higher gas prices, which spiked in part because of Russia’s war in Ukraine, but costs also jumped for housing, food and other items. Biden called the inflation report “Putin’s price hike.” View this post on Instagram A post shared by TheYeshivaWorld.com (@theyeshivaworld) “Your family budget, your ability to fill up your tank, none of it should hinge on whether a dictator declares war and commits genocide a half a world away,” the U.S. president said, referring to Russian President Vladimir Putin. But in his remarks at the POET biofuels facility in Menlo, west of Des Moines, Biden acknowledged that the waiver on ethanol mixes was a small step. “I’m doing everything within my power by executive orders to bring down the price,” he said. “It’s not going to solve all our problems, but it’s going to help some people.” Most gasoline sold in the U.S. is blended with 10% ethanol, a biofuel that is currently cheaper than gas. Biden was announcing that the Environmental Protection Agency will issue an emergency waiver to allow widespread sale of a 15% ethanol blend that is usually prohibited between June 1 and Sept. 15 because of concerns that it adds to smog in high temperatures. Senior Biden administration officials said the action will save drivers an average of 10 cents per gallon based on current prices, but at just 2,300 gas stations out of the nation’s more than 100,000. The affected stations are mostly in the Midwest and the South, including Texas, according to industry groups. Administration officials said the EPA has determined that the “emergency” step of allowing more E15 gasoline sales for the summer is not likely to have a significant air quality impact. That’s despite some environmentalists long arguing that more ethanol in gasoline increases pollution, especially during warmer summer months. The waiver is another effort to help ease global energy markets that have been rocked since Russia invaded Ukraine. Last month, the president announced the U.S. will release 1 million barrels of oil per day from the nation’s strategic petroleum reserve over the next six months. His administration said that has helped to slightly reduce gas prices lately, after they climbed to an average of about $4.23 a gallon by the end of March, compared with $2.87 at the same time a year ago, according to AAA. “Not only is this decision a major win for American drivers and our nation’s energy […]
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