Mad about gas prices? Blame government, not Big Oil

Henry Payne reports:

Congress first mandated the production of 4 billion gallons of ethanol this year (increasing to 7.5 billion in 2012). This arbitrary number is to help wean America from its "oil addiction," as President Bush puts it. In reality, it is a sop to the powerful farm lobby that makes corn-based ethanol.

Second, the energy bill required that ethanol replace MTBE as an additive in gasoline to meet smog rules in urban areas. Because smog is heaviest in summer, oil companies are refining their "summer blends" now. Already struggling to meet the initial 4 billion gallon mandate, the ethanol industry cannot keep up with the additional demand from the MTBE mandate, resulting in shortages and price spikes.

"We asked for a more orderly, two-year transition from MTBE to ethanol. But we didn't get it," Gilligan laments.

An easier transition would have required offending another powerful group: the Democrat-allied trial lawyers. They await the potential windfall from lawsuits alleging MTBE has leaked from gas tanks and tainted groundwater. As long as MTBE was federally mandated, oil firms had legal cover. But the energy bill set a May 5 deadline for the transition -- without any continuing liability protection for MTBE.

Government creates a problem then wants to create an even bigger problem.Maybe will need smaller and less intrusive government so oil prices can be lower.