January 9, 2023 – Bloomberg
Gasoline Prices Set to Rise If Corn-Belt States Win Fuel Fight
By Jennifer A. Dlouhy and Chunzi Xu
Pipeline systems fully contained within the Midwest and refineries primarily serving the region would generally shift to the new specification, according to an ICF analysis seen by Bloomberg News. But in-region refiners would have to find new markets for butane and other cheap, volatile hydrocarbons that lower the cost of gasoline.
The change also could isolate the Midwest’s fuel supply from the rest of the country, much like what happens in California — historically home to the highest retail prices in the country — because of its boutique grade. That would make the Corn Belt states, which consultancy RBN Energy estimates account for 10% of total US gasoline demand, more dependent on refiners in the region and create a risk of supply disruptions when facilities undergo maintenance or outages.
Though the Midwest is expected to have more gasoline than it needs this summer, it still frequently relies on the Gulf Coast for swing supplies — as much as 11% of the region’s consumption in July.
Read the full article here: https://blinks.bloomberg.com/news/stories/RO6Y5RT0AFB4
