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    Biden to Allow Higher-Ethanol E15 Gas to Be Sold All Summer

    WASHINGTON — President Biden announced on Tuesday a plan to suspend a ban on summertime sales of higher-ethanol gasoline blends, a move that White House officials said was aimed at reducing gas prices but that energy experts predicted would have only a marginal impact at the pump.The Environmental Protection Agency will issue a waiver that would allow the blend known as E15 — which is made of 15 percent ethanol — to be used between June 1 and Sept. 15. The White House estimated that approximately 2,300 stations in the country offer the blend and cast the decision as a move toward “energy independence.”“E15 is about 10 cents a gallon cheaper,” Mr. Biden said, speaking after taking a tour of a production facility that produces 150 million gallons of bioethanol annually. “And some gas stations offer an even bigger discount than that.”“When you have a choice, you have competition,” Mr. Biden added. “When you have competition, you have better prices.”The decision to lift the summertime ban comes as Mr. Biden faces growing pressure to bring down energy prices, which helped drive the fastest rate of inflation since 1981 in March. A gallon of gas was averaging $4.10 on Tuesday, according to AAA. Last month, the president announced a plan to release one million barrels of oil a day from the U.S. Strategic Petroleum Reserve over the next six months.Understand Inflation in the U.S.Inflation 101: What is inflation, why is it up and whom does it hurt? Our guide explains it all.Your Questions, Answered: Times readers sent us their questions about rising prices. Top experts and economists weighed in.Interest Rates: As it seeks to curb inflation, the Federal Reserve announced that it was raising interest rates for the first time since 2018.How Americans Feel: We asked 2,200 people where they’ve noticed inflation. Many mentioned basic necessities, like food and gas.Supply Chain’s Role: A key factor in rising inflation is the continuing turmoil in the global supply chain. Here’s how the crisis unfolded.Ethanol is made from corn and other crops and has been mixed into some types of gasoline for years as a way to reduce reliance on oil. But the blend’s higher volatility can contribute to smog in warmer weather. For that reason, environmental groups have traditionally objected to lifting the summertime ban, as have oil companies, which fear greater use of ethanol will cut into their sales.How much the presence of ethanol holds down fuel prices has been a subject of debate among economists. Some experts said the decision was likely to reap larger political benefits than financial ones.“This is still very very small compared with the strategic petroleum reserve release,” said David Victor, a climate policy expert at the University of California, San Diego. “This one is much more of a transparently political move.”Lawmakers in corn-producing states have been urging Mr. Biden to use biofuels to fill the gap created by the United States ban on importing Russian oil. Oil refiners are required to blend some ethanol into gasoline under a pair of laws, passed in 2005 and 2007, intended to reduce the use of oil and the creation of greenhouse gases by mandating increased levels of ethanol in the nation’s fuel mix every year. However, since passage of the 2007 law, the mandate has been met with criticism that it has contributed to increased fuel prices and has done little to reduce greenhouse gas pollution.Inflation F.A.Q.Card 1 of 6What is inflation? More

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    Rising Gas Prices Have Drivers Asking, ‘Is This for Real?’

    The average price of a gallon of gasoline is up more than 10 percent in the last week, leading some consumers to rethink their routines and spending.After months of working from home, Caroline McNaney, 29, was excited about going back to work in an office, even if her new job in Trenton, N.J., meant commuting an hour each way.But when she spent $68 filling the tank of her blue Nissan Maxima this week, she felt a surge of regret about switching jobs.“Is this for real?” Ms. McNaney recalled thinking. “I took a job further from home to make more money, and now I feel like I didn’t do anything for myself because gas is so high.”The recent rise in gas prices — which the war in Ukraine has pushed even higher — has contributed to her sense of disappointment with President Biden. “I feel like he wants us to go out and spend money into the economy, but at the same time everything is being inflated,” she said.Americans everywhere are feeling the sting of rising gasoline, which reached a national average of $4.07 a gallon on Monday, up more than 10 percent from a week ago. The last time consumers dealt with such a period of sharp price increases was when the global economy came undone during the 2008 financial crisis. (At that time, the average price per gallon reached roughly $5.37 when adjusted for inflation.)How Gas Prices Have JumpedThe average price of regular gasoline on Monday, compared with a week ago, in select states. (See below for a full list of current averages by state.)

    Source: AAABy The New York TimesThis time, the high gasoline prices are hitting during multiple crises, including Russia’s invasion of Ukraine, a pandemic that is receding but still not over, and the highest inflation levels in 40 years.Gas prices were already increasing before the invasion last month, as oil suppliers scrambled to keep up with rising demand from consumers and businesses recovering from Covid disruptions. But calls in recent days from U.S. lawmakers and others to ban Russian oil imports have spurred worries about another hit to global supplies. Prices at the pump, in turn, soared rapidly.The sticker shock is creating a conundrum for the Biden administration, which is trying to isolate Russia’s leader, Vladimir V. Putin, without squeezing the United States economy in the process.The extreme prices — which for some types of gas have hovered near $6 a gallon in parts of California — could be fleeting. Accelerating production in the shale oil fields of Texas and other regions is expected to begin replenishing supplies soon.Michael Feroli, chief U.S. economist at J.P. Morgan, said he expected consumer spending to slow over the next few months as Americans pay more to fill up their tanks. Some people will be able to draw on savings to partly cushion the blow, he said.“The long-term impact should be somewhat minimal,” Mr. Feroli said.Gasoline accounts for only a fairly small share of consumers’ overall spending, but because gas prices are so visible — posted in giant numbers alongside every highway in the country — they have an outsize influence on people’s perceptions of inflation and the economy.That perception is an increasingly dark one, according to drivers interviewed filling up on Monday. They said the higher prices had already caused them to cut back on expenses and small pleasures like going out to eat.For many, the high prices are another hurdle frustrating their efforts to return to normalcy after the pandemic.Since moving to the United States from Torreón, Mexico, in 2007, Jesús López, 36, was used to gas prices rising steadily for a few days, but eventually coming back down. Mr. López said this time felt different because he wasn’t seeing a stop to the climb when he filled up the tank of his 2008 Ford Expedition.Mr. López, who works as a school janitor in Dallas, said that if prices kept skyrocketing, he would have to cut back on leisure activities.“It’s sad that if I stop going to a restaurant, a toxic cycle will be created,” said Mr. López. “If I stop spending money on a restaurant, they’ll get less income and people could lose their jobs.”Mr. López said he empathized with Ukrainians, but lamented that the conflict overseas was also affecting working-class people in the United States.“If I have to spend more to go to work, then I’ll do it,” he said. “I’ll just have to administer and budget my money more if I want to keep having a decent lifestyle.”Sandy Ramos, 24, who lives in Cerritos, Calif., says much of the money she makes at her part-time job as a research and development engineering intern now goes to food and gas.She has looked into taking public transportation to work instead of driving, but that would add time to her already hourlong commute. Instead she is saving money in other ways, like cutting back spending on clothing.Ms. Ramos said she didn’t know where to direct her frustration over gas prices. “I don’t know who to blame or what to blame,” she said. “I feel like someone needs to be responsible for it.”The Russia-Ukraine War and the Global EconomyCard 1 of 6Rising concerns. More

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    What to Know About Gas Prices

    What to Know About Gas PricesCoral Murphy-MarcosReporting on the economyGas prices often peak in the summer as Americans plan road trips and outdoor holiday activities.The rise in gas prices has also comes as oil prices climbed steadily. Crude oil rose to its highest level in more than three years earlier this month, and is currently trading for about $70 a barrel.Goldman Sachs forecasts that oil prices could reach $80 a barrel this summer. Other analysts forecast a barrel could reach $100 in the coming years. More