House Passes E15 Bill as Government Panics Over Energy Crisis Begins

 Posted May 27, 2026 by Martin Armstrong |3 Minute Read

Congress is pushing nationwide year-round E15 gasoline because they are worried about fuel supply disruptions and soaring prices as the war cycle intensifies. They call it “consumer choice” and “energy independence,” but when you strip away the political marketing, what they are really doing is diluting the fuel supply because they are terrified of shortages and price spikes.

The House just passed H.R. 1346, the Nationwide Consumer and Fuel Retailer Choice Act, by a vote of 218-203. The bill would permanently allow year-round sales of E15 gasoline nationwide. E15 is gasoline blended with 15% ethanol instead of the standard 10%. Congress and the EPA are presenting this as some patriotic victory for farmers and consumers while pretending Americans are not noticing what is really taking place.

The government keeps saying E15 lowers prices at the pump. Of course, it does on paper. You are blending more ethanol into the fuel supply. Ethanol contains less energy per gallon than pure gasoline. That means your mileage declines and your tank empties faster. People end up buying more fuel more often while politicians brag that prices “fell” a few cents per gallon. Americans are paying more for less while Washington pretends this is economic progress.

The EPA openly admitted the purpose behind the emergency waivers was to “prevent disruption in America’s fuel supply” as the Iran war pushed energy markets into panic. They are not doing this because the economy is strong. They are doing this because they are worried about supply itself.

“President Trump is unleashing American Energy Dominance, and today’s action will directly lower prices at the pump and gives a clear demand signal to our domestic biofuels producers. Allowing the summer sale of E-15 will provide drivers more options at the pump, and deliver a bigger domestic market for American farmers,” said U.S. Secretary of Agriculture Brooke L. Rollins. The government is congratulating itself for putting lipstick on a pig. Trump spent years condemning Biden’s energy policies that led to elevated prices for different reasons. Washington does not want voters to look at an $ 8-per-gallon situation and suddenly realize that government policy has failed yet again because politicians continually act in their own self-interest while jeopardizing the entire country. The people always suffer when government instigates war. Quite unfortunate as Trump promised to keep America out of the Middle East, but somewhere along the way he morphed from a businessman into a politician. Human nature is consistent.

Governments dilute and stretch what they can at the beginning of a crisis. They lower standards quietly while telling the public everything is under control. You see it in currencies, banking, food quality, and now fuel. The objective is always the same: make a limited supply appear larger. Could this improve consumer sentiment regarding energy? People are still going to pay more at the pump. The end result is higher prices which equates to angry and fearful consumers. It is absolutely insulting for our overlords to question our intelligence in this manner. They genuinely believe we are too stupid to notice.

The EPA’s own regulatory structure restricted E15 during the summer months for years because higher volatility contributes to ozone and smog formation in hot temperatures. Suddenly now, in the middle of a geopolitical crisis and rising energy fears, all those concerns become “flexible.” Rules always change the moment governments become desperate.

This is why I have warned that inflation was never transitory. Once war enters the equation, inflation becomes structural because war attacks supply itself. You cannot print oil. You cannot print refining capacity. You cannot print stability in the Middle East. So instead governments begin blending, waiving, extending, subsidizing, and manipulating statistics while pretending they solved the problem.

The frightening part is that this is likely only the beginning. The government claims the measure is temporary, but in all likelihood, the measure will become a new norm that the public is forced to accept. Europe is already discussing energy controls openly. Once shortages deepen, politicians always shift from “consumer choice” to outright management of consumption itself.

Washington knows the energy situation is fragile. They cannot allow energy prices to reflect real scarcity because the debt structure would implode under the pressure. So instead they dilute the product and hope the public does not notice.

https://www.armstrongeconomics.com/markets-by-sector/energy/house-passes-e15-bill-as-government-panics-over-energy-crisis-begins/