EPA: Special fuels not to blame for costs

By H. JOSEF HEBERT
Associated Press Writer Thu Jun 22, 4:38 PM ET WASHINGTON

"Boutique" gasoline blends to help states meet clean air rules are not a factor in higher prices as President Bush has suggested, says a draft of a study ordered by the White House. Facing growing public outrage over soaring gasoline prices, Bush ordered the study on April 25 in a speech in which he attributed high gas prices in part to the growth of special fuels.

"We ... need to confront the larger problem of too many localized fuel blends, which are called boutique fuels," the president told a renewable fuels conference, adding that this has produced "an uncoordinated, overly complex set of fuel rules" that "tends to cause the price to go up."The review "did not reveal any studies or empirical data confirming that boutique fuels presently contribute to higher fuel prices or present unusual distribution problems," said the draft report.

The report, based on input from the states and the Energy and Agriculture departments, was written by the EPA. It said that the refining and distribution systems are "able to provide adequate quantities of boutique fuels, as long as there are no disruptions in the supply chain."