Monday, May 5, 2008

Ethanol Waiver Could Spike Gas Prices to $4.71 a Gallon

Texas (TGW) – A proposal by Texas Governor Rick Perry to waive half of the renewable fuel standard for ethanol could spike the price of a gallon of gas to $4.71.

corn ethanolGov. Perry’s proposal would require half as much ethanol to be produced in order to inject more corn into the food supply. The ethanol industry group Renewable Fuels Association

"It would add a bit over $1.10 a gallon to gasoline in the short term because you've got to go out and replace that 4.5 billion gallons of ethanol,” said John Urbanchuk, the director of industry analysis group LECG.

Missouri is also considering a waiver.

Via :: Reuters

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