US gasoline prices reach all-time record; further surge expected

March 24, 2008

US gasoline prices reached an all-time high of $3.26 per gallon last week, according to the Lundberg Survey of 5,000 gas stations, as ethanol margins improved. The figures were an all-time high for gasoline, even after adjustment for inflation, but were tempered by lower crude oil prices last week. The Lundberg Report cautioned that spring high-season demand had not yet peaked.

Gasoline prices are expected to spike higher than $3.50 per gallon as blenders move from winter to summer gas formulations amidst a shortage of the alkylate additive which has replaced ethanol as the summer oxygenate additive of choice for many blenders.

Prices in selected east coast markets could approach $4 per gallon as blenders scramble for alkylate, which replaces MTBE as a an additive to reduce tailpipe air pollution from unburned oxygen. Ethanol is also used to boost oxygen, but has a high evaporation rate.

Back in 2001, the Renewable Energy Action Project warned California over committing to alkylates owing to the potential for price spikes.

At the time, REAP director Brooke Coleman said “Governor Davis is silent about the national shortage of alkylates, which have reached “extraordinary” price levels this year, according to the Energy Commission. It is even more worrisome that Davis appears unconcerned about the public health risks. Hydrofluoric acid, a key ingredient to alkylate production, is one of the most deadly chemicals in the world.

The oil industry is willing to roll the dice, in the same way as they did with MTBE, because alkylates are cost effective.”

Nebraska land prices up 23 percent in ‘07 on corn demand surge

The Nebraska Farm Real Estate Market Survey shows that local farmland prices have jumped 23 percent in the past year, and 88 percent since 2003. Adjusted for inflation, land prices set an all-time rec...

Feedstock prices soar; palm oil could reach $1500 in 2008, says analyst; Syntec links prices to surge in queries for its cellulosic catalysts

In Malaysia, Godrej International projects that crude palm oil will reach a price of $1400 per tonne in the September 2008 - February 2009 period. Oil World projects $1090 per tonne in 2008; LMC Inte...

Brazilian ethanol production expected to reach record 6.4 billion gallons in 2008

In Brazil, the Sugar and Ethanol Industry Association said that 58 percent of the Brazilian sugar crop would be converted to ethanol in 2008, a record. Production is expected to reach 6.4 billion gall...

Biofuels Digest Index rockets up 4.70 percent to 85.02 on ethanol surge

The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, jumped 4.70 percent Friday to close the week at 85.02 on a surge in ethanol stocks. For the day, Archer Daniels Midland (ADM) ...

Malaysian crude palm oil prices soar to record $876 per ton; tracking petroleum oil increase

In Malaysia, crude palm oil futures reached a record $876 per ton, tracking the increase in oil prices to more than $96 per barrel. The Malaysian government delayed implementation of the Malaysian ...

Corn and soybean futures will reach all-time highs in 2008, says exec; corn to reach as high as $6 per bushel

In Illinois, a senior vice president with Memphis-based Informa said that Chicago Board of Trade corn and soybean futures prices will remain at or near all-time highs in 2008 due to continued demand p...

Written by Jim Lane · Filed Under Consumers & Fleets