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Rising oil prices have helped push the wholesale price of gasoline up by 40percentt since Dec. 24, leading to predictions by energy experts that retail gasoline prices will spike by as much as 25percentt in coming weeks.
WASHINGTON — The Environmental Protection Agency said on Friday that cars and light trucks from the 2001 model year onward can safely use a blend of 15 percent ethanol mixed with gasoline, up from the 10 percent standard now in effect in much of the country.
During the last two decades, methyl tert-butyl ether (MTBE) has been widely used as an additive to gasoline (up to 15%) both to increase the octane number and as a fuel oxygenate to improve air quality by reducing the level of carbon monoxide in vehicle exhausts.
"The first thing you do is pop the price of gasoline up quite a bit, and that reduces consumption".
About six million cars can now use any mixture of ethanol and gasoline, up to 85percentt ethanol, known as E85.
Oil Extends OPEC-Fueled Gains, Gasoline Up.
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"Usually when the price of gasoline goes up, all other prices go up," said Therasa Natalia, 22, who runs a noodle stall in the market.
Higher prices pushed receipts at gasoline stations up by 1.4 percent, but sales rose 0.9 percent even excluding gasoline, underscoring consumers' resilience.
And they gulp too much fuel in countries where gasoline costs up to $5 a gallon.
That is because demand for gasoline picks up drastically during the peak summer travel season.
Weak petroleum prices should help to further lower the cost of gasoline, freeing up income for households.
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