Filling up at the gas pump has become a lot more expensive — and it could get worse. But there's a cheaper fuel blend on the market across the U.S., at least temporarily.
Nationwide, the average cost of regular gasoline had climbed to $4.483 a gallon as of May 5, according to AAA's fuel site (1). That's the highest it's been since late July 2022 (2). But some states have pricier gas than others, with California leading the way at $6.131 a gallon.
That's why more Americans are getting a chance to fill up with a generally cheaper (3) fuel blend called E15, now available at gas stations across the country after a temporary emergency fuel waiver issued by the U.S. Environmental Protection Agency (EPA) came into effect on May 1. This allows sales of E15, which is usually limited in year-round availability (11), across the nation.
E15, or Unleaded 88 octane gas, includes 15% ethanol (an alcohol derived from corn) and 85% gasoline. But experts warn this fuel — if used in the wrong vehicle — could damage your car. You also might end up on the losing end when it comes to fuel economy.
"You'll save money at the pump, but you'll lose one to two percent in fuel mileage," Dave Martin, owner of an auto repair shop, told 12News Phoenix (4). "In the end, I don't know how much money you're really going to save."
Here's what to consider before filling up your car.
Is there any relief in sight for gas prices?
With the war in Iran and closure of the Strait of Hormuz, fuel prices have skyrocketed (5). About 25% of the world's seaborne oil flows through the Strait (6), making it a critical transit point.
Even if the war were to end tomorrow, gas prices won't suddenly drop back down to pre-war levels. Damage to energy-related infrastructure in the Middle East could cost as much as $58 billion to repair, according to a report by Rystad Energy (7).
"Repair work does not create new capacity; it redirects existing capacity, and that redirection will be felt in project delays and into inflation far beyond the Middle East," noted Karan Satwani, senior analyst of supply chain research with Rystad Energy, in the report.
That means, even if the Strait reopens, supply could continue to be constrained for months — so prices at the pump aren't going to drop overnight.
At the same time, gas stations are transitioning to summer-blend gasoline, which is more expensive to produce than winter-blend gasoline, bumping up prices by as much as 15 cents per gallon (8).
So high prices at the pump could get even higher this summer.
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A cheaper fuel blend
The EPA says its emergency waiver "will increase fuel supply and provide a variety of gasoline fuel blends to choose from without changing environmental protections already in place.” It is also allowing for the production and distribution of gasoline with 9% to 15% ethanol content (9). Ethanol is primarily used in E10 form, which has 10% ethanol, according to AAA (10).
The current emergency fuel waiver will remain in place through May 20, with the possibility of an extension if supply constraints persist. "Without this action, E15 gasoline cannot be used by roughly half of the country this summer," the EPA report noted.
The EPA says E15 can be used in cars, light-duty trucks and medium-duty passenger vehicles made in model year 2001 and later, as well as in flexible-fuel vehicles.
But it should not be used in vehicles older than 2001 or in motorcycles, off-road vehicles, boats, heavy-duty engine vehicles like school buses and delivery trucks, and non-road equipment like lawnmowers and generators (12). Cars not built for using E15 could end up with issues including fueling problems, corrosion and damaged rubber parts. Ensuring you don't use E15 in a vehicle that cannot handle it could save you costly repairs down the line.
Do this before filling up with E15
Consumer Reports recommends checking your owner's manual to see what type of fuel the manufacturer recommends (13).
"If your car is a 2001 model or older you'll probably find the recommendation is no more than 10 percent ethanol, which is the most common blend of regular gas in the U.S.," according to Consumer Reports. "One tank of E15 isn't going to kill your car, but it will affect it over time."
And, if you're filling up with low-grade fuel in a vehicle that requires a higher grade, you could end up damaging your car's engine.
And there is the fuel economy consideration. Even if your vehicle can handle E15, ethanol contains 33% less energy per gallon than gasoline. And that reduces fuel economy (14).
"Cars filling up with E10 already lose three to four percent; they would lose another one to two percent with E15," according to Kristen Walker, senior policy analyst and manager for energy and transportation with the American Consumer Institute (15).
"The use of biofuels and their statutes come with questionable benefits, despite claims of cost savings," she writes.
The EPA will continue monitoring supply conditions and could extend the waiver into the summer driving season.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
AAA (1),(2),(10); Renewable Fuels Association (3); 12News (4); PBS (5); International Energy Agency (6); Rystad Energy (7); National Association of Convenience Stores (8); U.S. Environmental Protection Agency (9),(12); Growth Energy (11); Consumer Reports (13); U.S. Energy Information Administration (14); American Consumer Institute (15)
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Vawn Himmelsbach is a veteran journalist who covers tech, business, finance and travel. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, CBC News, Yahoo Finance, MSN, CAA Magazine, Travelweek, Explore Magazine and Consumer Reports.
