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Drought being blamed for increase in gasoline prices

Posted by wlpo on August 2, 2012

The drought was bound to make the costs of some ag related goods and services rise but you probably didn’t expect to find the increase at the pump.

Higher corn prices driven by the drought are to blame for the overnight increase is gasoline prices. Terry Fulmer owns Fulmer’s BP in Peru.  He says the company is telling him the increasing corn price is driving up the cost at the rack.  Most gasoline is made with ethanol which is made from corn.

Fulmer says rack prices increased 15.3 cents per gallon Saturday, then by 12.2 cents per gallon earlier this week before going up another 24.2 cents per gallon Thurssday.  He’s selling regular gas for $3.99 per gallon.

And that’s become a common price in Peru, La Salle and Oglesby today.  He thinks most stations will be at $3.99 after Friday.

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