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Gas Just Changed Overnight—Why the Government Is Quietly Putting More Ethanol in Your Tank

Eve Nowell
5 min read
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Gas Just Changed Overnight—Why the Government Is Quietly Putting More Ethanol in Your Tank
Gas Just Changed Overnight—Why the Government Is Quietly Putting More Ethanol in Your Tank
  • The U.S. government is temporarily allowing the sale of E15 fuel, which contains 15 percent ethanol, in an effort to increase fuel supply and ease pressure at the pump amidst rising gas prices.

Gas prices are climbing again, and now the government is stepping in—but not in the way most drivers expect. Instead of tapping new oil sources or cutting demand, regulators are changing what’s actually going into your tank. More ethanol. Less gasoline. And it’s happening fast. On the surface, it sounds like a simple fix. Increase supply, bring prices down, give drivers a break.

But once you look closer, it’s not that simple. Not even close. The Environmental Protection Agency has issued a temporary nationwide waiver allowing the sale of E15 fuel. That’s gasoline blended with 15 percent ethanol instead of the usual 10 percent most drivers are used to. Normally, E15 is restricted during warmer months because of emissions concerns. That rule is now on hold, at least for a limited window.

The goal is straightforward: get more fuel onto the market and ease pressure at the pump as global energy markets stay unstable. And yes, the backdrop matters. There’s tension overseas, supply chains are tight, and prices have already crossed the $4-per-gallon mark in the U.S. So the logic is simple—if you can’t easily get more oil, stretch what you have. That’s where ethanol comes in.

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Here’s the part that matters: ethanol isn’t just some additive. It changes how fuel behaves. Most gas sold in the U.S. today is E10—10 percent ethanol, 90 percent gasoline. E15 bumps that ethanol portion up by half again. It’s usually cheaper. That’s the selling point. But ethanol doesn’t carry the same energy as gasoline. That means you’re not getting the same output per gallon.

In real-world terms, that can translate to slightly lower fuel economy. Maybe not enough to notice on a short commute, but over time—or under heavier loads—it adds up.

Towing, highway driving, pushing the car a little harder—that’s when the difference starts to show. And that’s where things get complicated. Modern vehicles can generally handle E15 without much trouble. Cars built in the early 2000s and newer were designed with materials and systems that can tolerate higher ethanol blends.

So for most daily drivers, this isn’t going to cause immediate damage. But “can handle it” doesn’t mean “works exactly the same.” Engine management systems adjust, sure. But they’re reacting to a fuel that behaves differently. That adjustment isn’t always perfect, especially in stop-and-go traffic where efficiency already takes a hit.

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Then there’s the other side of the market—the vehicles that aren’t modern. Older cars are more vulnerable. Ethanol attracts moisture, and over time, that can wear down certain rubber and plastic components in the fuel system.

It doesn’t happen overnight. But it happens. And small engines? That’s a different story. Boats, motorcycles, lawn equipment—these machines don’t like ethanol-heavy fuel. Not at all. Ethanol absorbs water, and if fuel sits for too long, it can separate. The ethanol and moisture sink to the bottom, leaving gasoline floating above. That’s called phase separation, and it’s exactly as bad as it sounds.

Engines that pull from the bottom of the tank can end up running on a water-heavy mix. That leads to rough operation, damage, or outright failure. So while cars might adapt, smaller engines are far less forgiving. There’s another wrinkle here that most people won’t notice until it’s too late. E15 isn’t always clearly labeled.

Instead of being marked as a higher-ethanol blend, it’s often sold under names like “Unleaded 88.” That number refers to octane, not composition. Ethanol naturally boosts octane ratings, so the fuel looks appealing at first glance. Higher number, lower price—it feels like a win.

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But that doesn’t mean it’s the right choice for every engine. And that’s where drivers can get tripped up. The timing of this move is no accident.

Fuel prices are under pressure, and the government is looking for ways to increase supply without waiting on new production. Ethanol, largely derived from corn, offers a domestic workaround.

But even that has consequences. More ethanol production means more demand for corn. And corn isn’t just fuel—it’s a major component in livestock feed. Shift too much supply toward fuel, and something else tightens. Food costs. Agricultural markets. It’s all connected.

So while the price at the pump might drop slightly, those costs don’t just disappear. They move. And here’s the part that doesn’t get talked about enough. The U.S. doesn’t rely heavily on Middle Eastern oil to begin with—less than 10 percent of imports come from that region. Most imports come from places like Western Canada.

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So this isn’t about replacing a massive chunk of foreign oil overnight. It’s about managing perception and short-term pressure. Keep fuel available. Keep prices from spiking further. Buy time.

Will it work? Maybe, in the short term. E15 is typically cheaper, and increasing its availability could soften price increases, at least temporarily. That’s the bet being made.

But drivers aren’t just buying fuel—they’re buying performance, reliability, and consistency. And when you start changing the mix, even slightly, those things can shift. At the end of the day, this isn’t a dramatic overhaul of the fuel system. It’s a quiet adjustment. One that most people won’t think about when they pull up to the pump. But it’s there. More ethanol. Less gasoline. A different balance. And whether it saves money or just shifts the cost somewhere else—that’s something drivers are going to feel, one tank at a time.

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The Independent

Fox host cuts off Trump’s top economic adviser when he tries to blame Biden for gas price spike amid Iran war

Rachel Dobkin
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Fox host cuts off Trump’s top economic adviser when he tries to blame Biden for gas price spike amid Iran war

Fox News’ Bill Hemmer cut off President Donald Trump’s top economic adviser when he tried to blame former President Joe Biden for high gas prices amid the Iran war.

Oil prices have surged as Iran has effectively closed the Strait of Hormuz, a waterway in the Middle East that carries about a fifth of the world’s oil. The national average cost of gas has exceeded $4 a gallon in the U.S. as Americans bear the brunt of Trump’s war against Iran.

Hemmer asked National Economic Council Director Kevin Hassett on America’s Newsroom Friday about the rising gas prices.

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The national average price of gas currently sits at around $4.09 a gallon, according to the American Automobile Association. A month ago, it was around $3.11 a gallon, and a year ago it was a tad higher at around $3.26 a gallon, AAA says.

Fox News’ Bill Hemmer cut off President Donald Trump’s top economic adviser when he tried to blame former President Joe Biden for high gas prices amid the Iran war (AFP via Getty Images)
Fox News’ Bill Hemmer cut off President Donald Trump’s top economic adviser when he tried to blame former President Joe Biden for high gas prices amid the Iran war (AFP via Getty Images)

“Maybe your forecast is the place to start here. Where do you see this going?” Hemmer asked Hassett.

“Our expectation is this is gonna last just a little bit longer and then things will get back to normal much faster than you could expect,” Hassett said. “The bottom line is though that we have taken every possible measure to minimize the disruption along the way.”

The economic council chief mentioned the 172 million barrels of oil that the Trump administration is releasing from the Strategic Petroleum Reserve.

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“It’s the second-largest release of the strategic reserve on record,” Hassett said.

The national average cost of gas has exceeded $4 a gallon in the US as Americans bear the brunt of Trump’s war against Iran (Getty Images)
The national average cost of gas has exceeded $4 a gallon in the US as Americans bear the brunt of Trump’s war against Iran (Getty Images)

“I’d like to remind everybody once again that we could have had a bigger strategic reserve effect except for the fact that right before the midterm election, Joe Biden — he’s the one who had the biggest release of the strategic reserve and there was no supply disruption at the time — he was just trying to offset all those terrible energy policies and get gas prices down ahead of the election,” he continued.

Hemmer then interjected, “Ok, but that was then, and this is now. And what’s now is West Texas crude, which is what we produce here in the U.S. We’re a net exporter of oil.

“On February 27, it was $67 a barrel. Now we’re at $111 for West Texas crude. I think the question there is, what can our economy tolerate? How high can it go?”

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Hassett insisted that the high gas prices are a “temporary phenomenon and it’s going to end very soon.”

Hassett insisted that the high gas prices are a 'temporary phenomenon and it’s going to end very soon' (AFP via Getty Images)
Hassett insisted that the high gas prices are a 'temporary phenomenon and it’s going to end very soon' (AFP via Getty Images)

The U.S., along with Israel, began launching strikes against Iran nearly five weeks ago, on February 28. In that time, U.S. Central Command said it has struck more than 12,300 targets.

Trump touted his perceived wins in the war during his national address Wednesday, telling the American people, “Never in the history of warfare has an enemy suffered such clear and devastating large-scale losses in a matter of weeks.”

But it's still unclear when the war will end, and in the meantime, Americans are feeling the economic pressure at the pump and beyond.

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Oilprice.com

U.S. Auto Industry Proposes Vehicle Fee to Replace Gas Tax

Tsvetana Paraskova
4 min read
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  • The increase in electric vehicle sales and rising gasoline prices are reducing revenues for the U.S. Highway Trust Fund, which relies heavily on the federal gas tax.

The growing share of electric vehicles and the expected increase in EV sales this year amid soaring gasoline prices are reducing the revenues for the U.S. Highway Trust Fund, which pays for America’s roads.

Most of the revenue for the fund comes from the 18.4% per gallon federal gas tax, which hasn’t been changed since 1993.

Yet, over the past 30 years, the funding for the trust fund has been declining, due to inflation and the fact that EVs now represent 2.5% of total light-duty vehicles in operation in America, and the market share of internal combustion engine vehicles has dropped by 24 percentage points since 2016.

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The new oil crisis and U.S. national average gasoline price topping $4 per gallon could prompt more potential buyers to look to purchase an EV—whose owners, obviously, don’t pay the federal gas tax.

More EVs means lower revenues for the Highway Trust Fund, which is teetering on bankruptcy every year and needs to be regularly backfilled by Congress. Therefore, the current oil crisis “shows why it’s time to dump the gas tax,” John Bozzella, president and CEO of Alliance for Automotive Innovation, said this week.

The auto industry trade association, which represents most U.S. and foreign automakers in America, proposes to scrap the federal gas tax and replace it with a single fee on every vehicle based on weight.

Related: Chinese Publication Claims U.S. Has Two Months of Rare Earths Left

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“This policy would guarantee every vehicle on the road contributes something to maintaining America’s transportation network,” Bozzella wrote in a blog post this week.

“We can drive with the devil we know… or get behind a new policy that requires every vehicle on the road to contribute to the upkeep of America’s roads and bridges.”

The auto industry group’s latest analysis of U.S. EV data showed at the end of March that a total of 164 electric models are now available for sale in the U.S. Although EV sales fell last year from 2024, electric vehicles represented 9.6% of new U.S. light-duty vehicle sales for full-year 2025.

EVs now account for 2.5% of total light-duty vehicles in operation in the United States, while the market share of internal combustion engine vehicles, whose owners pay the federal gas tax, has decreased by 24 percentage points since 2016.

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In January 2026, hybrids were 19% of all light-duty vehicle sales, the Alliance’s CEO Bozzella said.

As gasoline prices spike due to the war in the Middle East, the U.S. might see an additional shift in the marketplace toward EVs and hybrids, the industry group said.

“Online searches for EVs are up 20 percent since the conflict began,” Bozzella wrote.

The Alliance for Automotive Innovation argues that a single, weight-based vehicle fee can fully fund the Highway Trust Fund, unlike the gas tax.

For over 20 years, transportation spending has exceeded the dedicated revenue flowing into the trust fund as the gas tax has failed to keep pace with inflation, and vehicles are becoming more fuel-efficient, the Committee for a Responsible Federal Budget says. It estimates that the Highway Trust Fund would be insolvent by 2028.

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Since increasing the federal gas tax is a nonstarter in any Congress, the solution to fix the problem with the dwindling revenues for the Highway Trust Fund is to replace it with a fee for every vehicle using the road, regardless of how it’s powered/fueled, the Alliance for Automotive Innovation says.

Bozzella notes that the proposed weight-based vehicle fee is simple, and nobody would need to track how many miles you drive, like some proposals out there, to determine what you pay.

“Beyond that, it’s an overdue policy change that insulates infrastructure spending – a $3.5 trillion national need over the next decade – from gas price shocks and inevitable geopolitical disruptions,” Bozzella noted.

By Tsvetana Paraskova for Oilprice.com

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Jalopnik

Here's Why Getting Rid Of Gas Taxes Might Not Lower Prices After All

Collin Woodard
3 min read
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A Georgia gas station that recently ran out of gas
A Georgia gas station that recently ran out of gas - Megan Varner/Getty Images
  • Georgia gas station owners are resisting lowering gas prices despite the state's suspension of the gas tax, leading to consumer complaints and potential legal action.

Over the last month, the average price of gas has shot up by more than a dollar a gallon, making driving anywhere far more expensive than it was before Trump started wasting billions of dollars fighting a confusing war with Iran. That's bad news for anyone on a budget, especially those living on tight budgets, so Georgia responded by suspending its gas tax for 60 days. On a gallon of regular, that would save drivers about $0.33. Great idea, right? Not so fast. As Atlanta's WSB-TV reports, many gas station owners would much rather keep prices artificially high.

From a dollars and cents perspective, it makes sense. If they don't lower their prices, they keep that $0.33 every time someone buys a gallon of gas, and that adds up fast, even if we're only talking about 100,000 gallons a month. From the state's perspective, however, that's not fair, and those owners are bad for doing capitalism correctly. Georgia's residents aren't happy, either, calling in at least 25 complaints over 12 days and drawing the attention of Georgia's Attorney General Chris Carr.

"We commend Governor Kemp and our partners in the legislature for passing this critical measure to lower costs at the pump," Carr said in a statement. "Any business that purposefully fails to comply with the law will be investigated immediately, and we will not hesitate to prosecute if warranted. Now is not the time to play games at the expense of Georgia consumers."

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Read more: These Are Your Favorite Movie Cars

A violation of the Fair Business Practices Act

Gas prices in Griffin, Georgia
Gas prices in Griffin, Georgia - Anna Moneymaker/Getty Images

Carr also told WSB-TV, "These stations must pass on those savings onto the consumers," but actually forcing gas station owners to lower their prices could prove complicated. Expensive gas doesn't constitute a natural disaster, which would come with its own legal restrictions, and Carr told WSB-TV that he didn't believe the state's price-gouging laws would apply, either. Instead, he plans to use Georgia's Fair Business Practices Act.

"Let us know and we will investigate. It would be a violation of the 'Fair Business Practices Act' and each case is different, number of violations, severity of the violation...but we will look into this," Carr told WSB-TV. Unfortunately, I wasn't able to find a good explanation of whether or not there's a legal difference between continuing to "collect" the tax and simply raising the price to account for the $0.33 the state no longer makes them pay.

It was, of course, entirely predictable that business owners would choose making more money over not making more money, but the bigger question is what cuts the state will have to make as a result. Suspending the gas tax for 60 days will reportedly cost the state about $400 million, which means Georgia's transportation budget now has a near-half-billion-dollar hole in it. Which roads won't get resurfaced? Which potholes will go unpatched? Which road signs won't get replaced? Cheaper gas is nice, but is it really worth saving a few dollars if a pothole blows out your tire and cracks a wheel?

Want more like this? Join the Jalopnik newsletter to get the latest auto news sent straight to your inbox, and add us as a preferred search source on Google.

Read the original article on Jalopnik.

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Guessing Headlights

Bad Fuel Fears Grow as Multiple Cars Break Down After Same Stop

Philip Uwaoma
4 min read
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Drivers Face Repairs After Suspected Contaminated Gas.
Image Credit: NBC10 Philadelphia/YouTube.
  • Multiple drivers experienced sudden vehicle failures after refueling at a Sunoco station in Philadelphia, with mechanics attributing the issues to contaminated fuel.

A troubling incident at a neighborhood gas station has raised fresh concerns about fuel quality and consumer protection, after multiple drivers reported sudden vehicle failures shortly after refueling.

The cases appear to center on a Sunoco station located along West Cheltenham Avenue, where several motorists say their cars stalled within minutes of leaving the pump.

What initially seemed like isolated mechanical issues has now taken on the shape of a broader pattern, with mechanics and auto shops pointing to a more alarming root cause: contaminated fuel.

A Costly Breakdown: Eduardo Ramirez's Story

Drivers Face Repairs After Suspected Contaminated Gas.
Image Credit: NBC10 Philadelphia/YouTube.

One of the most striking accounts comes from Eduardo Ramirez, a car owner who described his vehicle as both a personal milestone and a prized possession. According to Ramirez, his car showed no prior signs of trouble. That changed abruptly after a routine stop for gas. Within a short drive, his vehicle shut down completely, leaving him stranded and facing an unexpected financial burden.

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The aftermath proved costly. Ramirez says repairs totaled around $2,200, a significant expense that has disrupted his financial plans, including saving toward a home purchase. More concerning, however, was what mechanics discovered during their inspection.

Rather than a typical mechanical fault, technicians identified an unusual mixture inside the fuel tank. The substance reportedly contained gasoline blended with oil and water, a combination that can severely damage an engine and compromise performance almost instantly.

Ramirez is not alone. Another auto shop in the area reported handling at least three similar cases, all linked to vehicles that had recently refueled at the same station. In each instance, water was found in the fuel tanks, a clear indication of contamination. Such findings suggest that the issue may not stem from individual vehicles but from the fuel supply itself.

How Fuel Contamination Happens

Drivers Face Repairs After Suspected Contaminated Gas.
Image Credit: NBC10 Philadelphia/YouTube.

Fuel contamination can occur through several channels. Water infiltration is one of the most common, often resulting from compromised underground storage tanks, condensation buildup, or poor maintenance practices. When water mixes with gasoline, it disrupts combustion and can lead to engine stalling, corrosion, and long-term damage.

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The presence of oil further complicates the situation, potentially indicating cross-contamination or a more serious breach in storage or handling systems.

When approached for comment, a representative at the station acknowledged that multiple customers had lodged complaints. The individual stated that the matter is being taken seriously and is currently under investigation. However, no definitive explanation has yet been provided, leaving affected drivers in a state of uncertainty.

Efforts to seek clarity from Sunoco have so far yielded no public response. Meanwhile, the Pennsylvania Department of Agriculture, which oversees fuel quality standards in the state, indicated that it has not yet received formal complaints specifically tied to this location. This gap between reported incidents and official records raises questions about reporting mechanisms and whether all affected customers are coming forward.

A National Pattern of Contaminated Fuel

Drivers Face Repairs After Suspected Contaminated Gas.
Image Credit: NBC10 Philadelphia/YouTube.

For consumers, the situation highlights a rarely considered risk in everyday driving. Fuel quality is generally assumed to be reliable, but incidents like this underscore the importance of oversight and accountability in the supply chain. Even a single compromised station can impact multiple drivers within a short period, amplifying both financial and safety concerns.

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There have been several recent contaminated fuel incidents in the U.S., including a major case in Colorado in January 2026 where diesel was mistakenly mixed into unleaded gasoline at 46 gas stations across Aurora, Breckenridge, Firestone, Colorado Springs, and other cities, leading to more than 600 consumer complaints and widespread vehicle damage.

In 2019, contaminated fuel at Circle K stations in Jacksonville, Florida, led to dozens of breakdowns. Roughly two years prior in Texas, water intrusion into underground storage tanks caused widespread complaints in Houston.

These incidents matter because repairs of affected cars often run into thousands of dollars, similar to Eduardo Ramirez’s $2,200 bill in Philadelphia. That’s not to talk of the risk of accidents from a sudden stall on highways. Regulators typically require suppliers to compensate affected drivers, but claims can be slow and contested.

What This Means for Consumers Moving Forward

That said, the Philadelphia Sunoco case fits a troubling national pattern: fuel contamination is rarely isolated. Whether caused by misblending, water intrusion, or poor storage, such incidents highlight vulnerabilities in the fuel supply chain. Stronger oversight, routine testing, and rapid compensation mechanisms are critical to protect consumers.

 

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As the investigation continues, those affected are left navigating repair costs and seeking compensation. For Ramirez, the experience has been more than just a mechanical setback. It represents yet another obstacle in an already challenging economic landscape. His hope, shared by others, is that responsibility will be acknowledged and restitution provided.

If you want more stories like this, follow Guessing Headlights on Yahoo so you don’t miss what’s coming next.

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‘Clean Fuel Credit System’ promises cleaner air in New Mexico but raises cost concerns

Micaela DePauli
5 min read
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NEW MEXICO (KRQE) –  The New Mexico Environment Department launched a new program aimed at decreasing air pollution by incentivizing innovation in the clean fuels industry. Officials expect that in the coming years, it will lead to cleaner options at the gas pump, and improved air quality and community health–especially respiratory illness rates.


Story continues below

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Michelle Miano, NMED’s Environmental Protection Division Director, said the initiative is a historic step for New Mexico. She said it’s the first intermountain and non-West Coast state to implement this kind of program.  “It really is a win-win for everyone,” said Miano following a statement about the potential health and environmental benefits. “It creates incentives and that economic investment that we love to see here in New Mexico, with new businesses and entrepreneurs coming to take advantage of the ‘Clean Fuel Credit’ opportunities.”

A law passed on party lines in 2024 laid the groundwork for the “Clean Transportation Fuels Program”. According to a Lujan Grisham administration press release, New Mexico is the fourth state to enact a “clean transportation fuel standard” for all fuels produced and imported here. The standard will get stricter over time and is based on the fuel’s carbon intensity, or the aggregate emissions of greenhouse gases emitted during its lifecycle—from well-to-wheel as the NMED likes to call it.

Along with that standard, Miano said there’s now a whole new “clean fuels marketplace” that all transportation fuel companies doing business in New Mexico are required to participate in.

The marketplace is centered around a clean fuel credit system. The lower the carbon content a fuel has, the more credits the company will earn. “It’s like a reward system for those who contribute to a cleaner environment, whether it’s electricity, biofuels, or hydrogen fuel cells,” said a narrator in an NMED explanation video.

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Companies that accrue credits can then sell or trade them directly to fuel companies that don’t meet the standard. Miano said many fossil fuel companies are already moving toward producing cleaner fuels, and hopes that this program incentivizes that progress.

She said Ethanol 10 is already at many pumps in the state, a blend composed of 10% renewable ethanol and 90% gasoline. Under the direction of the Trump administration, the EPA recently issued an emergency waiver approving the year-round sale of E15 (15% ethanol). “So New Mexico, in that regard, is ahead of the curve, because we already have a structure in place to bring those fuels to New Mexico. So that will probably be what we see first,” she said.

Miano also expects that in the coming years there will be a renewable diesel option at the pump, a fuel that’s made with bio-based feedstocks instead of petroleum.

Meanwhile, New Mexico GOP Chairwoman Amy Barela said the program will harm business and consumers. Barela said companies will put the extra cost on consumers. “If you put a mandate on a business that’s going to require an additional purchase, then obviously it’s going to go to the consumer,” she said.

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Barela said the cost getting passed down to consumers is already happening, citing an average 21-cent-per-gallon price jump that occurred on April 1 in New Mexico, the same day the Clean Fuels Program went live. She said the price jump that day is directly due to the law going into effect.

In an Instagram post, she told viewers that Democrat legislators “lied to you,” saying they promised during the 2024 session that this bill would not impact customers. And during an interview, she said, “They promised that this would not be a consumer expense, and now it is a direct impact on everybody’s pocketbook, and that will be seen.“ She added, “We know that the fuel prices are going to go down as soon as the war is finished in just a few weeks, with probably a little bit of a residual effect, but this tax credit will not go away.”

When asked what oil and gas industry stakeholders have been talking to the GOP about their thoughts on the program, Barela said she has not spoken with them directly.

Miano pushed back on the idea that the new program caused the price hike and said wars in Ukraine and Iran are leading to a decrease of availability in oil and overall volatility in the market, “So that price of oil that’s going up and down, that is far and away, the biggest driver of what gas prices are or are not,” said Miano. “That is the driver of increased gas prices. A program like this, you almost can’t even tell what any effect would be.”

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Miano said the NMED held a seminar on the first to introduce over 300 industry stakeholders and others to the program. She said the Zoom meeting maxed out with participants. “We’re working with all of the different transportation fuel companies, no matter where they fall in the market. And one thing we can say is that we are talking to everyone, and everybody’s participating,” she said. “There’s a lot of excitement from the Environment Department around that, and a lot of pride too. Our team has worked really hard to bring New Mexico to this point.”

Copyright 2026 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

For the latest news, weather, sports, and streaming video, head to KRQE NEWS 13 - Breaking News, Albuquerque News, New Mexico News, Weather, and Videos.

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