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The likely elimination of the additive methyl tertiary butyl ether (MTBE) from gasoline by refiners following the enactment of a broad energy bill earlier this week could push gasoline prices up next summer, according to the US Energy Information Administration (EIA).
The disuse of MTBE by the downstream sector, likely triggered by the bill's removal of a prescriptive oxygen mandate and failure to provide refiners liability protection from MTBE defective product lawsuits, could have the effect of taking out some 130,000 barrels per day of gasoline off of the market, EIA said.
The oxygen mandate required additives like MTBE or ethanol in gasoline used in smoggy areas of the US. The removal of the mandate will occur in May 2006 under the new comprehensive energy law signed earlier this week by President George...