US fuel prices in 2006

Motor fuel prices remain very sensitive to changes in the price of crude oil, supply disruptions, and weather-related incidents such as last summer’s hurricanes in the Gulf of Mexico. This year, major fuel-chemistry changes in the US will increase the volatility.Two major changes will take place in 2006: reduction of the sulfur content of 80% of highway diesel fuel to 15 ppm and removal of methyl tertiary butyl ether (MTBE) from reformulated gasoline. The ultralow-sulfur diesel (ULSD) program is required by the US Environmental Protection Agency under the Clean Air Act. MTBE removal will result from a combination of state bans and refiners’ decisions to quit selling gasoline c...

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