WASHINGTON The Biden administration said Tuesday it would allow high-ethanol content gasoline to be sold in the hot summer months, in an effort that could lower prices at the pump and pay political dividends in farm-country states.
President Biden, who is scheduled Tuesday afternoon to tour an ethanol plant in Iowa, is struggling with low approval ratings as voters report frustration with rising prices for gasoline and other consumer goods.
Allowing fuels with a higher ethanol content would lessen reliance on oil and give drivers more options, senior administration officials said, adding that it would save drivers 10 cents a gallon at current prices.
Oil-industry officials have questioned whether such moves would lower prices. Higher ethanol blending can sometimes raise prices on refiners. Corn prices, like oil, also have seen sharp increases this year because of Russia s invasion of Ukraine.
