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Sunday, April 11, 2004
From the Wall Street Journal:
Gasoline prices could top $1.80 a gallon nationwide during the coming summer driving season, but prices could climb much higher in places such as New York and Connecticut, federal officials said.
U.S. officials are particularly worried about big price jumps in the two Eastern states that switched this year to a new gasoline blend. This will be the first summer New York and Connecticut use ethanol instead of the gasoline additive methyl tertiary butyl ether, or MTBE, in response to environmental concerns. A switch to cleaner gasoline in the Chicago area, for instance, caused prices to jump as much as 30 to 40 cents a gallon.
The pricing of gasoline is bad enough with lowered OPEC quotas, and rising demand. But to incorporate additional factors of scarcity into the equation, such as requiring additives, is insane. It is a fact that most of the air pollution on the East Coast comes not from the states themselves, but from the midwestern states downwind which are largely manufacturing states (such as Ohio and Pennsylvania). Using MTBE, or ethanol, has done little to curb air pollution in Connecticut. The states in question have applied for a temporary waiver from the EPA. Smart money says that, once gas eclipses $2/gallon here (and it is almost there), pressure will build and the waiver will be granted.Labels: Archives_2004
.: posted by
Dave
8:58 AM
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