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NEW YORK -- New York State will switch to gasoline without the additive MTBE, which could mean steep, but temporary price spikes. However, the change will ultimately add about a penny to the price of gas during the winter season and a nickel in the summer, according a Newsday.com report.
"Those are the kinds of spikes we've seen in some other regions," said Joanne Shore, team leader of the Energy Information Administration's (EIA) Petroleum Division, according to the report. "What happens in New York and Connecticut, we can't predict."
In addition to the fuel switch, supplies of crude oil and gasoline are still tight, with crude oil at about $30 a barrel -- $2 higher than a year ago -- an OPEC production cut that took effect Saturday, Nov. 1, according to news reports.
California already implemented the MTBE ban, and New York and Connecticut will start Jan. 1. The reason behind the ban is the additive has been found to contaminate ground water supplies. As a result, some suppliers have begun switching so terminals will have ethanol-added gasoline in advance, the report stated.