Midwest Gas hike blamed on short supply

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Gas hike blamed on short supply

August 24, 2000

BY ROBERT C. HERGUTH TRANSPORTATION REPORTER

A shortage of a newly introduced cleaner-burning gasoline blend in the Midwest, pipeline breaks and various economic factors were responsible for the astronomical fuel prices in Chicago and Milwaukee this summer.

That was the conclusion of a report released this month by the U.S. Energy Department's Energy Information Administration, which warned dramatic price fluctuations could continue in future summers for the same reasons.

Because the report makes no mention of price gouging or collusion by the oil industry, some oil executives said they feel vindicated.

Robert Perciasepe, the top air quality official with the EPA, told the Associated Press that he still thinks the industry is to blame for the high prices, which reached about $2.50 in Chicago this summer before dropping amidst public outcry. Wednesday's average price in the Chicago region was $1.42 for a gallon of self-serve regular unleaded, according to the American Automobile Association.

EIA spokesman Jonathan Cogan said the report didn't address the allegations against the industry because his agency had to use the facts on hand.

http://www.suntimes.com/output/news/gas24.html

-- Martin Thompson (mthom1927@aol.com), August 24, 2000


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