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Ethanol Spike Causing Rising Gasoline Prices

April 04, 2014

Photo via fishhawk/Flickr.
Photo via fishhawk/Flickr.

A volatile ethanol market has been driving gasoline prices higher since early February because most gasoline sold in the U.S. has about 10% of the corn-based biofuel, reports MarketWatch.

So far this year, the price of the ethanol additive has surged 30% to $2.30 per gallon. In March, ethanol prices rose 22%, according to the outlet. In recent years, the corn-based fuel has been cheaper than gasoline hydrocarbon, making it an appealing blending option to lower prices.

The national average price of gasoline rose to $3.57 for the week ending March 31, according to data from the U.S. Energy Information Administration. Among the 50 states, 29 recorded an average price of at least $3.50 at the end of March, according to the AAA's Daily Fuel Gauge Report.

The shorter supply of ethanol is mostly due to transportation disruptions due to harsh weather, energy pundits told MarketWatch.

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  1. 1. J Haga [ April 07, 2014 @ 10:44AM ]

    As Rosanne Rosanadanna used to say:"Jane. it's always something."
    Next week it'll be a crisis in Brazil or some other fib.
    A few months back it was the rising price of corn which as we know is a stupid use for it given if ethanol was to ever really help America's energy crisis it has to be made from other biomaterials such as stalks and not the grain itself but then that wouldn't be as volatile as current pricing which plays to the producers.
    Gas prices seem to stumble from one BS crisis to another such as when ALL refineries go down for maintenance at same time.
    It wouldn't be so bad if Big Oil didn't consider the Consumer such idjits and just tell us they jack us around all the time.

  2. 2. Larry [ April 08, 2014 @ 05:45AM ]


  3. 3. Jerry [ April 09, 2014 @ 12:22PM ]

    Of course they never tell the whole story that most intelligent people can figure out on their own. So ethanol is up 30%? At 10% blend that explains about $.10 per gallon. How about explaining the rest of the huge increases?

  4. 4. Just Fred [ April 10, 2014 @ 10:07AM ]

    Oh So Monsanto raised their seed prices now that they control all US grown corn? It's only fair play seeing how Big Oil has been gouging us for so long. They deserve their place at the middle class trough too.


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