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Illinois and five other Midwestern states opted out of a federal
waiver regarding the weight of E10 gasoline, hoping the federal
government would require year-round sales of E15.
Gov. J.B. Pritzker renewed his call for year-round E15 sales
last month, saying the fuel blend with 15% ethanol would
increase demand for corn by 2 billion bushels a year.
Illinois Fuel & Retail Association CEO Nate Harris said Illinois
is stuck in the middle of a fight between the refining and
ethanol industries.
“If current regulations go into effect in the summer, we’re
likely to see 25 to 30 cent per gallon price increases,” Harris
told TCS.
Harris said the IFRA supports year-round E15, but until a
federal fix is enacted, Pritzker should follow Ohio’s lead by
opting back into the E10 waiver.
“The governor can make that request to the U.S. [Environmental
Protection Agency], and it’s our understanding that that would
most likely be accepted. That would avoid the price increases as
well as the headaches for operators,” Harris said.
Harris said the state could wait for emergency waivers instead
of requesting the standard E10 waiver.
“The problem with waiting for the emergency waiver is that
prices will start to increase for consumers until the waivers
are issued,” Harris said.
Harris said operators would buy lighter-waited gas during the
waiting period.
“When the emergency waiver comes in, they’ll be stuck with more
expensive product. Then they’ll have to compete with states like
Indiana or all the other states in the Midwest that are not
opting out of this E10 waiver,” Harris said.
Doing nothing and and allowing the op-out to take effect, Harris
said, would cause 25 to 30 cent increases.
The governor’s office did not immediately respond to a request
for comment.
Harris said if prices go up and volume goes down, tax revenues
would also decrease.
At 48.3 cents per gallon, Illinois has one of the highest motor
fuel taxes in the United States.
According to AAA, the average per-gallon price for regular
unleaded in Illinois climbed back over $3 this week to $3.035 on
Friday. The national average was $2.90.
One year ago at this time, the average Illinois price for
regular unleaded was $3.26 per gallon.
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