Ethanol shortage could up gas prices

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USA Today Money comments about a potential for future increases in gas prices and also shortages in Ethanol.

Gasoline prices will be unusually high and shortages might occur this summer, because the U.S. ethanol industry can’t keep up with the demand for fuel-grade alcohol to mix with gasoline, the head of the U.S. Energy Information Administration told a Senate committee Wednesday.” [ more ]

On Wednesday of this week the Senate Environment and Public Works Committee met to discuss ethanol as a substitute for MTBE, a clean-air additive in gasoline. This potential change will increase the cost of refining and also greatly increase the usage ethanol. Refiners currently use MTBE and are now are discontinuing it because MTBE can taint water supplies and Congress has refused to protect them from MTBE lawsuits. Ethanol is the only readily available substitute.

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