Posts Tagged ‘Rising gas prices’

Michael Green

(WASHINGTON, November 15, 2013) “The EPA’s proposal to decrease ethanol requirements will help drivers by preventing a surge in gas prices or the premature expansion of E15 gasoline sales. While we would like to increase the use of alternative fuels, it is a plain fact that the Renewable Fuels Standard’s original targets are unreachable without putting motorists and their vehicles at risk.

“The EPA has finally put consumers first. Their proposal will support the continued development of alternative fuels, while also recognizing the needs of the millions of people that drive every day. Today’s proposal is an important step in the right direction, but it does not go far enough. Suggesting a range for 2014 targets does not guarantee that motorists will be protected from the risk of higher ethanol blends. We encourage the EPA to act quickly to finalize specific targets that help protect drivers nationwide.

“The vast majority of cars on the roads today are not designed to run on gasoline containing more than 10 percent ethanol. While ethanol has the potential to support the economy and reduce the reliance on fossil fuels, it is irresponsible to mandate more ethanol than cars can safely use.”

More than 90 percent of the vehicles on the road today are not approved by manufacturers to use E15, including most 2001-2013 models. E15 is only approved for use by automakers in flex-fuel engines, 2001 and newer Porsches, and selected 2012 and newer vehicles where it is clearly specified in the owner’s manual. While new models increasingly can use E15 gasoline, previous makes and models were never designed to use the fuel. It will still take at least another decade before the bulk of the fleet will be E15 compatible given that the average vehicle remains in use for more than 11 years.


Michael Green Contact TileBob Darbelnet Will Testify Regarding E15 Gasoline to Congressional Subcommittee

Additional Resources

WASHINGTON, D.C. (July 23, 2013) – AAA President & CEO Bob Darbelnet will testify today to a Congressional subcommittee that the EPA should consider whether target volumes to the Renewable Fuels Standard can be met without putting consumers at risk.

“I would urge Congress to keep American consumers front of mind when reviewing the RFS requirements for 2014,” continued Darbelnet.  “If the only way to meet the RFS requirement is to introduce E15 gasoline before consumers are educated and consensus is reached on which vehicles can safely use the fuel, then the RFS should be modified.”

The House Committee on Energy and Commerce’s Subcommittee on Energy and Power is conducting the hearing to examine the Renewable Fuels Standard, a program created under the Energy Policy Act of 2005 to establish a renewable fuel volume mandate. AAA has urged regulators and the industry to stop the sale of E15 gasoline until motorists are better protected due to the strong likelihood of consumer confusion and the potential for voided warranties and vehicle damage.

“The number of states where E15 is sold has doubled in recent months despite continuing evidence that drivers are not aware of the fuel and could be unknowingly putting their cars in jeopardy,” continued Darbelnet. “AAA is not opposed to either ethanol or the RFS, but we remain very concerned with the way that E15 has been brought to market and is being sold to consumers.”

The subcommittee hearing is scheduled for July 23 at 10:00 AM in 2123 Rayburn House Office Building.

AAA believes that ethanol-blended fuels have the potential to provide motorists a clear choice at the pump that supports jobs, promotes energy independence and reduces fuel costs.  Both E10 and E85 provide options for consumers at this point, and AAA would support a motorists’ right to choose E15 once basic thresholds have been met regarding consumer protections. More than 95 percent of the gasoline sold in the United States is E10, which contains up to 10 percent ethanol. E85, which contains up to 85 percent ethanol, is designed for use by flex-fuel vehicles.

A AAA survey last fall found that only 12 million out of the 240 million light-duty vehicles on the roads were approved by manufacturers to use E15. Thirteen manufacturers stated that the use of E15 may void warranty coverage. AAA’s automotive engineering experts believe that sustained use of E15 could result in costly problems such as accelerated engine wear and failure, fuel-system damage and false “check engine” lights in some cars. An overwhelming 95 percent of consumers surveyed by AAA were not familiar with E15, indicating a strong likelihood of consumer confusion leading to misfueling.

As North America’s largest motoring and leisure travel organization, AAA provides more than 53 million members with travel, insurance, financial and automotive-related services. Since its founding in 1902, the not-for-profit, fully tax-paying AAA has been a leader and advocate for the safety and security of all travelers. AAA clubs can be visited on the Internet at

Michael Green Contact Tile(WASHINGTON, July 16, 2013) AAA’s Chris Plaushin (director, federal relations) is testifying before the Senate Energy and Natural Resources Committee today during a hearing “to explore the effects of ongoing changes in domestic oil production, refining and distribution on U.S. gasoline and fuel prices.” Chris Plaushin’s testimony is available here.

AAA Executive to discuss the potential impact of rising gas prices on American travelers

ORLANDO, Fla., (March 23, 2012) – AAA Executive Vice President, Association and Club Services, Mark Brown will testify on March 27 before the U.S. House Committee on Natural Resources regarding the impact of rising gas prices on consumer travel plans. A copy of Mark Brown’s full written testimony will be posted on AAA NewsRoom at on March 27.

AAA Lists State-by-State Average Price per Gallon

(WASHINGTON, Feb. 21, 2012) The price of West Texas Intermediate (WTI) crude oil increased by $2.60 per barrel today to settle at $105.84 at the close of formal trading on the NYMEX, after markets were closed yesterday for the Presidents’ Day holiday. This is the highest settlement price since May 4, 2011. Crude prices today were driven higher by bullish news overseas, as European finance ministers yesterday agreed to a Greek bailout package and Iran halted its oil exports to France and Britain.

An improving economy overseas would be expected to consume more oil, which exerts upward pressure on prices. At the same time, when economies strengthen overseas, the U.S. dollar weakens and the price of oil (traded in dollars) becomes relatively less expensive. Oil futures subsequently become a more attractive investment, which exerts upward pressure on prices, as was the case today. While Iran’s announcement that it would cut off oil exports to Britain and France is worth noting, as it continues the recent escalation of geopolitical tension and uncertainty in the market, the ultimate impact on supply is limited. Britain and France get the majority of their oil from the North Sea region, and Iranian imports account for only 3 percent of their daily needs.

Despite continuing reports of historically anemic demand, crude prices last week were pressured higher by positive economic reports and increased tension with Iran. As Greece moved closer to securing the bailout necessary to prevent default on its sovereign debt, the U.S. economy continued to show signs of recovery, and WTI crude prices rose to end the week at a new 2012 high. At the same time, WTI continued to trade at a significant discount to Brent crude (the historic European benchmark) due to the bottleneck of WTI at its delivery location in Cushing, OK. With this in mind, many analysts have suggested that Brent may be a more accurate global benchmark for oil prices at this time. While refineries in the center of the country have access to these relatively cheaper crude products, refineries near the coast must purchase crude at more expensive global prices. This disparity is subsequently reflected in the price that motorists are paying at the pump, as those in the center of the country see relatively lower prices than those closer to the coast. Please see below for a state-by-state list of today’s average price for a gallon of regular gasoline.

Motorists in Hawaii and California are paying on average more than $4.00 per gallon, while those in Colorado and Wyoming pay less than $3.10. Drivers in Hilo, HI pay the highest price of any metropolitan area nationwide ($4.44 per gallon) however the ten highest priced areas in the lower 48 states are all in California and are all above $4.00 per gallon as well. These areas with the top-ten highest prices are listed below.

  1. Santa Barbara-Santa Maria-Lompac, CA: $4.105
  2. San Luis Obispo-Atascadero-Paso Robles, CA: $4.103
  3. San Diego, CA: $4.087
  4. LA-Long Beach, CA: $4.082
  5. San Francisco, CA: $4.079
  6. Ventura, CA: $4.077
  7. Orange County, CA: $4.071
  8. Riverside-San Bernardino, CA: $4.047
  9. (tie) Oakland, CA: $4.031 and San Jose, CA: $4.031

The current national retail average price for a gallon of self-serve regular gasoline is $3.57. Today’s price is six cents more expensive than one week ago, 18 cents more expensive than one month ago, and 40 cents more expensive than one year ago.


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