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Wednesday, 05 June 2013 12:42

Gas guzzling economics

While we basked in the sun when the recent temperatures finally broke the 80 degree mark, I'm already seeing people running their vehicles with the air conditioning on. It's going to be a long summer for these folks, as the approach of summer also means the usual rise of fuel prices that hit only one thing the wallet. 

Those who follow the petroleum industry explain it away by stating that more people travel in the summer months, thus creating a larger demand on the country's fuel supplies. This is only partially true it's also the time of year when refineries transition between producing two different types of gasoline, a winter blend and a summer blend. Since 1990, the Environmental Protection Agency (EPA) has required the use of reformulated gasoline blends under the Clean Air Act, where higher amounts of low-cost additives like butane help gasoline evaporate more quickly during the winter, but are reduced for blends used during the April through September season.

Published in The Frugal Edge

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