I believe the recent switch from MTBE to ethanol in areas mandated to
use oxygenated gasoline will make ethanol free gasoline more available
for the rest of the country, because ethanol supply is very stretched
and the ethanol price is inflated. Right now the *wholesale* ethanol
price is $2.77/gal, about 50c higher than the gasoline. The oil
company is not going to add ethanol to gasoline in areas where it's not
absolutely mandated. Keep in mind that ethanol can't be blended into
gasoline at the refinary and transported in pipelines. It must be
transported separated and blended at a terminal facility.