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Tuesday, August 14, 2012

Drought in US Pushes Prices of Gasoline Higher


 

What is the relationship of absence of corn/lack of it to the gasoline prices.
The severe drought caused shortage of ethanol, and hence the price increase in gasoline

Well, the use of ethanol (alcohol) has caused increase in prices of corn.

The drought brought about lesser corn production, and the same or increasing demand increased the price of ethanol;   thus driving prices of gasoline


Midwest Drought Helps Push Gasoline Prices Higher

Yahoo News on drought causing increase in petrol prices

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