A New Spike at the Pump?

A gas-price rise may be in the offing, thanks to a rule change affecting a smog-fighting oxygenate. Refiners are scrambling to deal with the situation

Another spike in gasoline prices could be around the corner. And this time it may not be caused by a major natural disaster like Katrina -- or ever-present geopolitical tensions -- but a decision made by bureaucrats in Washington. The Environmental Protection Agency has lifted a regulation that requires the presence of smog-fighting oxygenates like methyl tertiary butyl ether (MTBE) in gasoline amid questions about the additive's safety.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.