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California clears sales of higher-ethanol fuel to lower gasoline costs
Reuters • • business
Key Points:
- California Governor Gavin Newsom signed Senate Bill 795, allowing the immediate sale of E15, a gasoline blend with 15% ethanol, removing the state's previous ban on this fuel.
- The legislation aims to reduce high gasoline costs in California, where prices average about $6.14 per gallon, significantly above the national average of $4.44.
- The approval of E15 is expected to boost demand for ethanol by approximately 650 million gallons annually, benefiting ethanol producers and corn growers.
- Experts estimate that E15 could lower retail gasoline prices by around 20 cents per gallon, potentially saving California drivers at least $2.7 billion annually.
- This move aligns with broader national discussions on allowing year-round sales of E15 amid concerns over global oil supply disruptions and rising fuel prices.
