Tuesday, April 11, 2006

The Government is saying it today. I said it last month:

One of the big news stories today, is the Energy Information Administration’s energy outlook for the summer. In their outlook they claim gasoline prices will increase this summer to an average of $2.62 per gallon, 25 cents more than last summer. They claim that the reason for the increase is due to:

“Increase in production and distribution costs associated with Tier 2 gasoline and the phase-out of MTBE”.

If you recall back on March 17th I posted on this blog how “gas prices will most likely rise this summer but don’t blame the oil companies”. As I said back then, gas prices should go up this summer as the governments plan to replace the unfriendly MTBE with the environment friendly ethanol. Unfortunately as with any overhaul there is a difficult transition period that must take place. In this case it will be a drop in production, as the oil industry said supply would drop by 145,000 barrels a day driving up the cost to the consumer.

So when you see the report in the news today remember the NYYRC Blog had told you first.

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