Gas prices likely to rise after state budget strips tax exemption on ethanol

https://www.ilnews.org/news/economy/gas-prices-likely-to-rise-after-state-budget-strips-tax/article_3a76b51e-7013-11e7-86ed-7329c341da0e.html

SPRINGFIELD, IL (Cole Lauterblach, Illinois News Network.  Please click on the link above for the full story.  Here is an excerpt below.)

An advocate for gasoline wholesalers says they’ve been betrayed by the newest Illinois budget and could see a shift away from ethanol-mixed fuel because of it.

E10 gasoline, which is regular gas with ten percent ethanol blended in, has had a 20 percent tax exemption at the wholesale level since 2011. The budget passed by lawmakers earlier this month removed that discount that would have been up for renewal in 2018, which industry experts say will likely result in an increase of between 7-10 cents per gallon at the pump.

Bill Fleischli, Executive Vice President of the Illinois Petroleum Marketers Association, said his members could stop using the E10 gas if straight fuel gets cheap enough.