If a plan by seven Midwestern state governors is approved to increase the use of corn-based ethanol, we could be staring at higher gasoline costs.
The federal government is reviewing the plan that if approved would of course be good news for corn farmers, but not necessarily for consumers reported Bloomberg.
Here’s why. It would force oil refiners in the Midwest to provide a specialized gasoline grade and to construct new storage tanks—all matters that would potentially result in increased costs. Costs which would be passed along at where else? The pump.