Motorists in the American Midwest could pay an extra 12 cents per gallon for gasoline under a fuel policy shift demanded by governors in the region, according to a new refining industry-commissioned analysis.
The study, conducted by Baker & O’Brien Inc. for the main US refining trade group, outlines larger-than-expected impacts of the change, which is part of a bid to encourage filling stations to sell higher ethanol E15 gasoline and offer it year round. That’s in stark contrast to a previous estimate commissioned by advocates of corn-based ethanol that saw only a 2-cents per gallon increase for consumers.
The latest study underscores the high political and economic stakes facing President Joe Biden and the Environmental Protection Agency, which has no latitude under federal law to deny the change — only delay it. Already, formal government action on the issue has been stalled amid opposition from refiners and pipeline operators stoking concerns about the economic consequences amid record-setting inflation.
