What's Happening
Cynthia Thompson, president of the American Fuel and Petrochemical Manufacturers (AFPM), issued sharp criticism on March 27, 2026, against a finalized EPA rule she says will significantly worsen gas prices for American consumers. Thompson's statement underscores growing concern that the new regulation arrives at precisely the wrong time—as fuel prices today are already climbing due to geopolitical tensions in Iran. According to AFPM's analysis, the existing Renewable Fuel Standard (RFS) mandate already costs drivers approximately 25 cents per gallon, and the EPA's new rule is expected to add tens of cents more to the price per gallon at the pump.
Why It Matters at the Pump
The national average gas price reflects a complex mix of crude oil costs, refining capacity, and regulatory mandates. When the EPA finalizes rules that increase blending requirements or compliance costs, those expenses typically flow downstream to consumers within weeks. The timing here is particularly acute: Middle East tensions have already pushed crude futures higher, tightening margins for refiners who must now absorb additional compliance costs under the new EPA standard. Regional impacts will vary—states with stricter fuel formulations (like California) and Midwest markets reliant on ethanol blending already face higher baseline prices; this rule threatens to widen that gap further.
What's Driving This
The RFS, enacted in 2005, mandates that U.S. refiners blend increasing volumes of renewable fuels (primarily ethanol) into gasoline and diesel. The system was designed to support domestic agriculture and reduce petroleum dependence, but industry analysts argue it has become economically inefficient and price-distortive. The EPA's latest rule tightens those blending mandates further, forcing refiners to source more renewable volume or purchase renewable identification numbers (RINs) in the secondary market—a cost ultimately passed to drivers. Simultaneously, Iran-related supply concerns have lifted crude prices, eliminating any buffer refiners might have used to absorb new regulatory costs.
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What Drivers Should Expect
Analysts expect the combined effect of geopolitical crude pressure and the new EPA rule to push gas prices higher throughout spring and summer 2026, with the largest increases likely visible in regions already subject to stricter fuel standards. Drivers should monitor national average gas price trends on AAA and GasBuddy daily; if prices climb sharply over the next two weeks, consider filling up sooner rather than later. The duration of elevated prices will depend on both Iran tensions and the EPA's implementation timeline—watch EIA weekly petroleum reports for inventory signals that may indicate price relief later in the quarter.