Missouri mandates use of ethanol
Missouri became the third state to mandate that 10 percent
ethanol be mixed with gasoline effective January 1. Missouri joined Minnesota
and Hawaii in requiring the use of ethanol.
Ethanol-blended gasoline, referred to as E10, is becoming
common due to federal standards for alternative fuel usage.
Missouri’s transition to ethanol blended gasoline was
expected to be smooth since many gasoline stations had already made the
switch in 2007. Federal renewable fuels standard calls for oil companies
to purchase 4.7 billion gallons of ethanol and biodiesel in 2007. An
oversupply of ethanol, along with government tax incentives for ethanol,
has caused ethanol-blended gasoline to be approximately $.05 to $.07
cheaper per gallon. This motivated Missouri gas stations to make the
switch to ethanol ahead of the mandate.