The Biden Administration held an emergency meeting with oil refiners to discuss the possibility of bringing down gas prices. Possibly on the table, according to Patrick DeHaan, head of petroleum analysis at GasBuddy, is a waiver of the Reid Vapor Pressure standard that governs smog emissions from cars. "Early reports coming out saying, some sources indicating, that Secretary [of Energy Jennifer] Granholm may be willing to talk about the possibility of RVP waivers," he said. "Using summer gasoline RVP waivers would essentially expand the pool of gasoline available during the course of the summer, potentially alleviating some of the pain."

Closing Bell

Biden Admin Could OK RVP Waiver on Smog to Increase Fuel Supply

members of the biden administration today, attending an emergency meeting with major US oil Refiners amid a record high gas prices across the country. Well, U. S. Energy Secretary jennifer Granholm will try to convince oil giants to open up more refining capacity to help americans at the pump. But the two sides are likely far apart on a path to achieving that. So joining me now is Patrick DeHaan, head of petroleum analysis at Gasbuddy, which aims to help consumers find the lowest prices at the pump. Patrick, it's great to see you. Is there any middle ground that these two sides can find? Boy christian? That's a loaded question and it doesn't really seem like there is now. Although in early uh in early reports coming out saying some sources indicating that Secretary Granholm may be willing to talk about the possibility of RVP waivers. Of course, much of the nation using summer gasoline RVP waivers would essentially expand the amount of pool, expand the pool of gasoline available during the course of the summer, potentially alleviating some of the pain. But I mean, obviously the biden administration has gone after Refiners and oil companies before so whether the tide has turned well, we'll have to see what happens in the days ahead. In terms of any shifts from Refiners or the administration, of course there are other potentially market moving and gas price pump moving news bits ahead here in these next few weeks as well. An opec meeting next week um a week from today that could of course let more gasoline supply out to the entire world as well as President biden's upcoming trip in july to Saudi Arabia, the biggest exporter of oil and gas around the world. What's your latest read, Patrick? Where do you think prices head from here? Well, I think in the short term we're going to continue seeing some relief at gas pumps across the country just today. In fact, just checking data a moment ago, the national average is now down to 4 93 a gallon. That's almost 10 cents a gallon lower than the peak. So we're starting to see declines accelerate across the country. That should continue for the next 1-2 weeks potentially beyond that. But before we say the future is clear and prices will keep falling. The risk is still there. That we could see a late super spike in gas prices this summer if we see a major hurricane keeping in mind that demand and supply, there's very little breathing room and that's why potential RVP waiver could alleviate the situation interesting. I also want to ask you about President biden's announcement yesterday afternoon during this show that he wants to basically do away with the gas tax, calling on Congress to implement that companies to pass it along to consumers and then of course, for state and local governments to jump in as well. What's the reality that that actually comes to fruition, Patrick. And how much money do you think it would save consumers? Well, it probably wouldn't save consumers a whole lot. Now there would be the psychological benefit of seeing lower prices at the pump, but we're talking about roughly 2.5 to $6 a week in savings. Over over the course of this. Now, the president has suggested it would go for 90 days That could cost the Highway Trust Fund $6.3 billion, But it would save Americans about $70 million Americans 700 million more than a year ago. So it's really kind of lipstick on a pig. It's only a 4% decline. So it's not a whole lot and there certainly are some constants. Okay, best advice for anyone trying to fuel up their tank are their days of the week, Patrick that you find are better than others. What are some tips and tangible tips people can take away. Well, I think as we progress towards July four, there's not really a terrific day, but rather later down the road. So don't fill your case up completely, prices will continue coming down by what you need. Uh you know, if you're hitting the road for July four, be wary of those state lines, that's where you think gas prices fluctuate significantly. Some states have gas tax holidays, shop around before you fill your tank, try to drive a little bit more fuel efficiently. I know it's not the fun thing to do, but it can boost your miles per tank substantially. Alright, Such good advice, Patrick DeHaan, head of petroleum analysis at Gasbuddy Patrick, We appreciate it.