As usual, Geoff Styles is worth reading:
Since the administration has apparently ruled out an increase in the gasoline tax to cover declining Highway Trust Fund revenues, it’s surprising that it appears to be giving serious consideration to a proposal that would raise a hidden tax on gasoline. This is even more perplexing, when you realize that this increase would actually reduce the government’s net take on every gallon of gasoline sold, while simultaneously diminishing the value of the product for consumers.
That “hidden tax”? A push by the U.S. ethanol industry to increase the percentage of ethanol allowable in gasoline from 10 percent to 15. The effect, according to Styles, will be to “effectively raise the price by 3.4 cents per gallon, while reducing federal tax revenue by 2.2 cents.”
(Via The Energy Collective.)