Ethanol, Gas Prices & Oil Profiteering

According to a new study today by the Consumer Federation of America, gas prices could be reduced by 8 cents a gallon if oil companies used lower-priced ethanol as a fuel additive rather than higher-priced petroleum ingredients. But as the Kansas City Star reports, the report notes that "oil companies are keeping gas supplies tight and prices high even though ethanol is plentiful and available at prices that have dropped 40 cents a gallon or more since the beginning of the year."

Why would the oil companies resist using ethanol? Because the Bush administration refuses to force them to use ethanol, and, in the absence of a serious government mandate, they can continue price gouging Americans and raking in record-breaking profits.

In Montana, the new Governor and state legislature said enough is enough, stood up to the oil/gas industry, and and actually passed a bill forcing the oil companies operating in state to include a certain percentage of ethanol in fuels. That mandate creates a market for ethanol development, helping the rural economy and hopefully bringing prices down. Bush and the Republicans won't do something like that because they've long ago been bought and paid for by the energy industry.