CNN had a scathing article about how politicians are chiefly responsible for the high price of gasoline. The EIA (the Energy Information Administration) announced that oil and gas inventories rose unexpectedly, and the price of crude oil dropped 3% to $72 a barrel. Refinery production was also higher than anticipated.
While crude pricing went up 21%, why have gas prices gone up 37%? Why are gas prices hanging so high over the country, at a national average of $2.917/gallon, just shy of the all time high after Hurricane Katrina of $3.06? Critics say Congress bungled the timing of certain measures designed to mitigate the energy crunch, not make it worse. For example, they phased out the use of oxygenate MTBE (Methyl tert-butyl ether) and replaced it with Ethanol, mainly because MTBE was found persistently in ground water and has been deemed to be a carcinogen. The problem is the switch was timed just before a seasonal demand spike. Fewer people are directly concerned about diesel fuel, but the new sulfur requirements were handled much better.
Will politicians of both parties do the "Kabuki dance" and continue to blame each other, and various excuses for the problem? How high can gas prices go and what can be done about this?
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