Federal agency eliminates fuel-additive regulations to save over $500 million per year

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The Consumer Product Safety Commission is easing safety requirements for fuel-additive containers, a move the agency says will save businesses an estimated $545.7 million in annual regulatory costs.

The change exempts containers holding products such as engine cleaners, fuel stabilizers, and performance enhancers from requirements to install flame-mitigation devices, which are designed to prevent flames from traveling into fuel containers and triggering explosions.

According to the commission’s analysis, smaller manufacturers would have faced significant packaging expenses to comply with the requirements, possibly driving up costs for consumers. The agency also said it had identified no reported flame-jetting incidents involving the fuel additives covered by the action.

The rollback follows a September 2025 federal court ruling in favor of a fuel-additive company. U.S. District Judge Jeffrey Bryan ruled that the commission had exceeded its statutory authority by applying the requirements to products that are not themselves fuels, a rule it had adopted under the Biden administration.

The dispute stemmed from the Portable Fuel Container Safety Act of 2020, which Congress passed after flame-jetting incidents involving portable fuel containers caused at least 11 deaths and 1,200 emergency room visits between 1998 and 2013. The law directed the commission to require flame-mitigation devices in containers intended to hold certain flammable fuels, including gasoline, diesel, and kerosene.

In January 2023, the commission adopted a safety standard for portable fuel containers. The agency subsequently interpreted the requirements to cover certain prefilled fuel-additive containers, prompting objections from manufacturers who argued that the technology was incompatible with their packaging and that the law did not cover their products.

The commission had repeatedly delayed enforcement as manufacturers sought additional time to comply. In December 2025, acting Chairman Peter Feldman said the government would not appeal the court’s ruling and pledged to clarify the regulations to bring them in line with the statute.

In announcing the latest action, the commission framed the change as part of President Donald Trump’s effort to reduce federal regulatory burdens. The agency also cited the Supreme Court’s 2024 decision in Loper Bright Enterprises v. Raimondo, which overturned a long-standing precedent requiring courts to defer to reasonable agency interpretations of ambiguous statutes.

“Congress imposed these requirements on fuel containers, not products designed to clean and maintain engines,” Feldman said. “Washington should not force American businesses to spend billions complying with regulations that never should have applied to their products in the first place.”

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Requirements for gasoline cans and other covered portable fuel containers remain in place.

The changes come as consumers are feeling the burden of high gas prices caused by the war in Iran. The issue is top-of-mind for both politicians and voters as the November midterm elections quickly approach.

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[ H/T Washington Examiner ]

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