Ethanol Shortage Driving Up Retail Price of Gasoline


Ethanol has replaced MTBE for most refin­ers as the sum­mer oxy­genate to meet clean air stan­dards and as an exten­der for gaso­line. The demand for ethanol as an addi­tive has caused its price to soar about 65% since ear­ly May to around $4.50 a gal­lon, mak­ing it far more expen­sive than gaso­line.

Oxy­genates allow fuel to burn more clean­ly, espe­cial­ly in hot weath­er
Ethanol has replaced MTBE as gaso­line oxy­genate addi­tive for most refin­ers
MTBE caus­es can­cer when leaks into ground water so users open to law suits
MTBE trad­ing at under $2/gal when phased out in ear­ly May