There are a lot of commonly-discussed culprits for high U.S. gas prices — increasing world demand for oil, the peak oil theory, oil speculators — but cleaner-blended fuels used in certain regions isn’t a common one we’ve heard. The Houston Chronicle takes a look at the possibility that more than a dozen “boutique” blended fuels, which have been introduced in certain regions following state and federal clean air regulations, are adding to the price at the pump.
Various regions, from cities such Houston to states like California and Missouri, have adopted blended fuels, like gas mixed with ethanol, to cut emissions. But because that leaves certain regions more dependent on specific refineries, those areas could be more vulnerable to gas price hikes. The article notes that in the aftermath of Hurricane Katrina, when Gulf Coast refineries were knocked offline, gas prices soared in the areas that depended on that supply.
California could be particularly susceptible to this issue. The Chronicle article quotes the president of the National Petrochemical and Refiners Association in Washington, Charlie Drevna, as saying:
There’s a reason why Californians pay a lot more for gasoline than the rest of the nation.
While there’s no doubt that we need cleaner burning fuels, but it seems like there needs to be a much more standardized and nationwide approach. A lot of organizations and government groups are working on it. The DOE and EPA are currently studying the most effective ways to reduce the number of blended fuels. But remember, while reducing the number of blended fuels could help regional price hikes, it could — depending on the blended cleaner fuels chosen — lead to higher average prices across the board. Would the rest of the nation be OK with paying California-level gas prices?
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