Buying gas by the bushel
Our friends in the ethanol industry are going to have a tough time explaining this:
Ethanol shortage could up gas prices:
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.
I’m sure the governor is planning any minute now to haul the ethanol executives in for profiteering.
EIA has forecast summer gasoline prices averaging about $2.50 per gallon, or 12 cents more than last year. It has not, however, directly blamed ethanol shortages.
EIA reported Wednesday that U.S. inventories of gasoline – though still robust – dropped 5.4 million barrels last week, the biggest drop since the week ended Aug. 22, 2003.
The wholesale price of gasoline for summer-month delivery rose several cents a gallon, to about $1.91.
Ethanol, by contrast, ranged from about $2.49 to $2.52.