Now Here's An Interesting Development

The entire global picture has changed since the US introduced it's mandate to mix ethanol with gasoline. The country currently blends 9 billion gallons of the stuff with regular gasoline which is then sold at the pumps nationwide.

Quite a few things have changed since this mandate was introduced. The price of oil has shot up to an all-time high, then fallen back to a three year low. The price of corn has also shot up to an all-time high in excess of eight dollars/bushel, before also falling back to a more normal $3.50/bushel.

Then of course we have the credit crunch, slumping economies and rising unemployment. We have a US government throwing $800 billion at the economy to try and get it back on it's feet.

One way to help of course if by lower fuel prices. Step into the spotlight Missouri.

Missouri gas retailers have been selling gasoline without any ethanol blended into it for several weeks now, according to reports. And guess what? Gasoline in Missouri is the cheapest in the whole of the US, with prices as low as $1.33/gallon on Wednesday, compared to a national average of $1.89/gallon. That's a saving of almost one third.

What's so different about Missouri? State law allows retailers to sell straight gasoline with no ethanol mix IF that is cheaper than a blended fuel.

With ethanol currently asking up to $1.70/gallon and straight gasoline nearer $1.00/barrel it's a no-brainer.

An interesting conundrum for fiercely pro-ethanol Barak Obama when he takes office in January. Waiving the ethanol mandate on a national level might accelerate the economic healing process, whilst going against Obama's environmental principles.