News coverage of the recent floods suggests ethanol shortages are to blame for rising gas prices. Setting the record straight on this, the Renewable Fuels Association just released an analysis that explains the real reasons why consumers are paying more at the pump. RFA’s analysis says prices are up due to several factors including:
- A surge in crude oil prices since the start of the year.
- Typical seasonal patterns in gasoline pricing, partially reflecting the changeover to summer specifications.
- Refinery maintenance and unplanned outages.
The analysis states: “While the Midwest floods in mid-March did affect ethanol transportation and some individual facilities, this occurred at a time when ethanol inventories were at record levels. Stocks in most regions, including the Gulf Coast and East Coast, are above year-ago levels. West Coast inventories have been declining since the start of the year but are slightly above the minimum levels experienced over the last 12 months.”
To read the full analysis, click here.
