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  • Benjamin C. Wagner

Why Have Gas Prices Spiked?


Recently, widespread flooding has significantly impacted lifestyles in many communities throughout the Midwest. The water has displaced many and will continue to do so until life returns to normal. Unfortunately, a sense of “normalcy” may be some time off.

The Petroleum Industry has already felt an effect of the flooding especially from an ethanol perspective. For instance, Nebraska, the second largest ethanol-producing state in the country, was the hardest hit by the floods with 80 percent of its counties declaring emergencies. And it’s not necessarily a problem with the ethanol not being produced; rather it’s more with ethanol delivery. Ethanol must be shipped across state lines in most cases via rail. With the widespread flooding, ethanol-loaded railcars cannot traverse the railways further disrupting the flow of fuel. As a result, ethanol shortages will become more frequent at sites nationwide leading to steadily-increasing prices at the pump, if stations have product to pump at all.

But in no way is this cause for panic or alarm. Floodwaters will begin to recede in the coming days and weeks, and life will slowly begin returning to normal. So, too, the flow and delivery of ethanol.

In order to learn more about the results of this most recent flooding, please contact a member of the Clean Fuels National sales team at: (260) 346-2500.


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