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<blockquote data-quote="Babagounj" data-source="post: 833371" data-attributes="member: 12952">If President Obama really wants to help low-income and fixed-income folks (who are the most adversely affected by&nbsp; rocketing gas prices), then he should immediately suspend the EPA’s&nbsp; requirement for “summer formula” gasoline, which is more expensive and&nbsp; is directly contributing to the current price hike.But the White House won’t acknowledge that the annual winter-to-summer&nbsp; gasoline switch contributes to price increases, because the switch is a&nbsp; result of environmental concerns. The EPA requires reformulated gas for&nbsp; summer use to reduce emissions. The practical result is a decreased&nbsp; supply of gasoline, and, thanks to the iron law of supply and demand,&nbsp; prices go up.
Why does EPA’s requirement for reformulated “summer gas” cause supply&nbsp; to decrease? First, refineries must temporarily shut down production&nbsp; when they switch from winter to summer formulas. Second, the summer&nbsp; formulation results in less gasoline produced per barrel of crude oil, when compared to the winter&nbsp; formulation. Lastly, imports increase to make up for the shortfall in&nbsp; domestic summer refining; one analyst says&nbsp; the issue is compounded by the fact that summer reformulated gas is a&nbsp; “boutique” product, expensive to produce with a limited market outside&nbsp; the USA. Bottom line: thanks to the EPA, we have less gas at higher&nbsp; prices every summer.
Read more:&nbsp; <a href="http://dailycaller.com/2011/04/29/obama-should-lift-the-requirement-for-summer-formula-gas/#ixzz1L6cxDLhV" target="_blank">http://dailycaller.com/2011/04/29/obama-should-lift-the-requirement-for-summer-formula-gas/#ixzz1L6cxDLhV</a>

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[QUOTE="Babagounj, post: 833371, member: 12952"] If President Obama really wants to help low-income and fixed-income folks (who are the most adversely affected by rocketing gas prices), then he should immediately suspend the EPA’s requirement for “summer formula” gasoline, which is more expensive and is directly contributing to the current price hike. [LEFT]But the White House won’t acknowledge that the annual winter-to-summer gasoline switch contributes to price increases, because the switch is a result of environmental concerns. The EPA requires reformulated gas for summer use to reduce emissions. The practical result is a decreased supply of gasoline, and, thanks to the iron law of supply and demand, prices go up. Why does EPA’s requirement for reformulated “summer gas” cause supply to decrease? First, refineries must temporarily shut down production when they switch from winter to summer formulas. Second, the summer formulation results in less gasoline produced per barrel of crude oil, when compared to the winter formulation. Lastly, imports increase to make up for the shortfall in domestic summer refining; one analyst says the issue is compounded by the fact that summer reformulated gas is a “boutique” product, expensive to produce with a limited market outside the USA. Bottom line: thanks to the EPA, we have less gas at higher prices every summer. [COLOR=#000000]Read more: [url]http://dailycaller.com/2011/04/29/obama-should-lift-the-requirement-for-summer-formula-gas/#ixzz1L6cxDLhV[/url] [/COLOR] [/LEFT] [/QUOTE]

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