EPA Authorizes Early Switch to Cheaper Winter Gasoline as US Pump Prices Stay Above $4 a Gallon

The US Environmental Protection Agency authorized an early switch to cheaper winter grade gasoline on Thursday, August 20, 2026 (29 Mordad 1405), Oilprice.com reported, allowing sales of 10 percent ethanol blended winter gasoline to begin September 1 rather than the usual mid September seasonal transition. The administration said ending summer blend requirements early could add hundreds of thousands of barrels per day to domestic gasoline supply and provide some relief at the pump.

According to AAA data cited by Oilprice.com, average US gasoline prices have stayed above 4 dollars a gallon since mid July, about 1 dollar higher than when the Iran war began and the highest Americans have paid this late in the year. The waiver came the same day Treasury Secretary Scott Bessent announced new sanctions against Iran. The US Energy Department has said it expects elevated fuel prices to persist through year end, as Washington and Tehran have failed to reach an agreement reopening the Strait of Hormuz.