MTBE Phase-Out will Stretch US Gasoline Supply-EIA

US refiners’ attempts to phase out a water-fouling gasoline additive could mean “transition pressure” for gasoline prices next summer, the US Energy Information Administration said Tuesday.

Some refiners will phase out use of methyl tertiary butyl ether, or MTBE, because of liability concerns, the EIA said in its monthly supply and demand report. The chemical is a suspected carcinogen, and has leaked into underground water supplies in many US states.

“As the market adjusts to the new provisions, there could be transition pressure on gasoline prices from the supply loss next summer, depending on the number of suppliers that eliminate their use of MTBE,” the EIA said.

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