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Page added on March 30, 2006

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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.

Merely “short-term challenges,” countered Bob Dinneen, president of the Renewable Fuels Association, the ethanol trade group. Whatever can’t be produced here can be imported, he said.

But imported ethanol, mostly from Brazil, carries a 54-cents-per-gallon tariff that would boost fuel prices even more, unless it were waived. (Story: Energy independence spurs Brazil to boost ethanol goals)


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