US explanations diverge over high gasoline prices

07/18/2005
Two explanations of contrasting credibility emerged last month for why, beyond crude oil fundamentals, US gasoline prices are high.One came from the Government Accountability Office, the other from the Kansas City Star.GAO examined the boutique fuel trend in the US and concluded that the proliferation of specialty blends has increased gasoline prices and price volatility.The agency identified 11 special blends-gasoline designed to reduce emissions of ozone precursors and meet oxygen-content specifications. The number jumps to 45 when various octane levels and other factors are considered.GAO said its evaluation of pretax wholesale price data for 100 cities confirmed the tendency of specia...
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