Omaha, Neb. – July 11, 2007 (AgNewsWire) – Midwest consumers are experiencing sticker shock at the gas pump. Since July 1, gas prices have increased on average of more than 40 cents due in part to diminished refining capacity. Flooding and lightening related fire incidences have closed refineries in certain parts of the nation.
“If these shortages persist, my fuel stations could run low on fuel supplies,” said Gary Wright, vice president of Wright Oil, Inc., based in Central South Kansas, while waiting in line for several hours to refill his supply tanker. “My current gasoline price is $3.36 but my eighty-five percent ethanol-blend is selling for $2.80 per gallon. With the number of ethanol plants producing in my area, I will be able to keep my E85 price stable.”The United States gasoline demand has outpaced its refining capacity. Globally an estimated 84 million gallons of gasoline are refined per day, but an equal number of gallons are used. This leaves the world unable to create excess supplies necessary to deal with unplanned disruptions that limit supply.
