What is wrong with this picture?
- Regular unleaded gasoline (HU) futures for June delivery on the New York Mercantile Exchange as of 1 pm CDT – $2.1950/gallon
- Reformulated unleaded gasoline (RBOB) futures for June delivery on NYMEX as of 1 pm CDT (not quite the same blend as is required in southeast Wisconsin, but it is more plentiful than the special Milwaukee/Chicago blend) – $2.4450/gallon
- Ethanol futures for June delivery on the Chicago Board of Trade as of 1 pm CDT – $2.810/gallon (it is important to note that ethanol, where it is required, is added at the terminal and is not part of either of the blends of gasoline traded on NYMEX)
- Average pump price of regular unleaded gas in Madison (no reformulated or ethanol requirement) from MadisonGasPrices.com as of 1:30 pm CDT – $2.891/gallon
- Average pump price of regular unleaded gas in Milwaukee (both reformulated and 10% ethanol requirements) from MilwaukeeGasPrices.com as of 1:30 pm CDT – $2.910/gallon
A couple of hints for you who have had a public-school “education”:
- The trading-price premium for reformulated gasoline over regular gasoline – $0.2500/gallon
- The effective trading-price premium for ethanol-laced reformulated gasoline mandated in southeast Wisconsin ($2.4896/gallon at 90% RBOB, 10% ethanol) over non-ethanol-laced regular gas available elsewhere in the state – $0.2946/gallon (side note for those stuck on corn-a-hole; mandating 10% ethanol on regular gas would add $0.0696/gallon to its effective trading price, making that $2.2565/gallon)
- The pump-price premium for the ethanol-laced reformulated gasoline sold in Milwaukee over (mostly) non-ethanol-laced regular gasoline sold in Madison – $0.019/gallon
That might be something you want to ask Gov. Jim Doyle about. Back in 2000, when he was Attorney General, his repsonse to a similar inflation of reformulated gasoline prices was to threaten to sue any member of Big Oil that didn’t spread the pain across the entire state. You might also want to ask current AG Peg Lautenschlager about this. It sure looks like she’s continuing the Doyle policies.
Revisions/extensions (5:30 pm 5/12) – If Tommy Thompson jumps into the governor’s race, you might want to ask Mr. “Stick it to ’em” about this too. While Thompson did try (and fail) to get southeast Wisconsin out of the RFG mandate while he was still in Madison, he didn’t exactly try to dissuade Craps from his threats to persecute Big Oil if they didn’t spread the pain.