Southern Indiana drivers could soon see lower gas prices after fuel rule change

LOUISVILLE, Ky. (WDRB) — Indiana regulators voted Monday to eliminate the reformulated gasoline requirement in Clark and Floyd counties, a change officials said could lower gas prices for local drivers.

Reformulated gas — know as RFG — is a specially-blended fuel designed to burn cleaner than conventional fuel. The Environmental Protection Agency required some cities in heavily populated areas to use RFG to help reduce smog in the air.

Although the fuel burns cleaner, it also typically costs more to produce. Louisville, for example, rid itself of the RFG requirement at the end of May after the fuel was estimated to have made gas prices in the city 35 cents per gallon higher than nearby counties.

With the air quality improving in Louisville and southern Indiana, state regulators said the special fuel blend is no longer necessary.

The change is also expected to make business easier for gas stations, which will no longer need to purchase RFG. Because Marathon Petroleum was the only supplier selling the fuel, stations will now have more options when buying gas.

Officials said the change will not interfere with the area's ability to reach air quality standards. And for drivers in Clark and Floyd counties, the move could mean lower prices at the pump in the coming weeks.