Ethanol pushes Chicago gas prices to highest in U.S.

Ethanol pushes Chicago gas prices to highest in U.S.

Chicago gas prices are among the highest in the country, jumping to nearly $4.20 a gallon on Monday, according to petroleum analysts. Average gas prices in the U.S. have increased 18 cents over the past two weeks.

Gregg Laskoski, a senior petroleum analyst with the gas tracking website Gas Buddy, said the drought and its effect on corn supply is a major issue.

“The drought that is perhaps one of the worst in the last 50 years is certainly having a horrible impact on corn supply,” he said. “That in turn does indeed affect ethanol because corn is a major factor in ethanol production, so that’s pushing ethanol prices higher.”

The Lundberg Survey of fuel prices puts the average price for a gallon of regular at $3.69, about eight cents higher than the same time last year.