Gasoline prices could be moving higher, if the EPA restricts the sulfur content in gasoline in addition to its push for increased ethanol requirements despite flat to declining demand for gas.
The proposed mandates could slightly increase gas prices in the near term, but the biggest worry is the effect the increased expenses will have on the traditionally tight-margin refining industry. The American Petroleum Institute estimates a $2.4 billion yearly expense for the refining sector, which could force some refiners to close their doors and, in effect, restrict supply and raise fuel costs. Check out the following video for more information.
