Drought drives up price of ethanol

Journal-Sentinel Online, Milwaukee, WI
By Rick Barrett of the Journal Sentinel
July 21, 2012


10% of a gallon of gasoline is additive made from corn

The severe drought that has scorched much of the U.S. corn crop could be felt by consumers at the gasoline pump as well as the grocery store.

That's because 10% of nearly every gallon of gasoline is ethanol, a fuel additive distilled from corn.

As corn fields wither in the heat, the price of ethanol on the Chicago Board of Trade has risen nearly 25% this year to more than $2.70 per gallon - well above its average of about $2 a gallon over the last seven years.

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