The Car and Truck Fleet and Leasing Management Magazine

Seasonal Demand, MTBE Removal Costs Spur Jump in Gasoline Prices

March 24, 2006

WASHINGTON, D.C. --- The U.S. average retail price for regular gasoline jumped by 13.8 cents per gallon between March 13 and March 20 --– the third-largest weekly increase ever recorded by the Energy Department’s Energy Information Administration (EIA) since it began tracking weekly retail prices in 1990. The EIA attributed the recent price surge to seasonal demand as well as new costs associated with the removal of methyl tertiary-butyl ether (MTBE) from gasoline. “The rapid switch from MTBE to ethanol could have several impacts on the market that serve to increase the potential for supply dislocation and subsequent price volatility on a local basis,” the EIA said. “This uncertainty about future supplies and concern about the logistics of blending ethanol RFG (ethanol must be transported and stored separately from the base gasoline mixture to which it is added until the last step in the distribution chain) appears to be causing wholesalers to buy more gasoline now than they may have done otherwise.”By tracking the spot price of gasoline in various markets across the U.S., the EIA inferred that wholesale prices have jumped by nearly 50 cents per gallon since mid-February.But retail prices are expected to stabilize in the short-term. “Now that wholesale prices appear to be flattening, we would expect retail prices to remain close to current levels, given the typical difference between spot prices and retail prices," the EIA said. "This would imply that retail prices could be near their short-term peak. Of course, this could change if spot prices were to increase again.”
Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.


Fleet Tracking And Telematics

Todd Ewing from Verizon Connect will answer your questions and challenges

View All


Fleet Management And Leasing

Jack Firriolo from Merchants will answer your questions and challenges

View All


Fuel Management

Bernie Kanavagh from WEX will answer your questions and challenges

View All


Sponsored by

Owned by the Taylor family of St. Louis, Enterprise Fleet Management supplies most makes and models of cars, light- and medium-duty trucks, and service vehicles across North America.

Read more

Fuel Saving Strategies Survey

View our 2008 survey to benchmark your fleet's fuel and green strategies with other fleets.

Fuel Calculator

A managed fuel program can help you save time and money and gain control over the way you fuel your vehicles. Determine your potential savings by using our fuel calculator.
Launch Fuel Calculator 

Fuel Prices

U.S. Gasoline and Diesel Fuel Prices.

Launch Fuel Prices 

Up Next

More From The World's Largest Fleet Publisher