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Mexico Raises Ethanol Allowance, Sparking Rush To Supply South-Of-The-Border Markets

Harry Wood
/
Wikimedia Commons

The Mexican government has raised the amount of ethanol allowed in a gallon of gasoline, in a move that could have a big effect on the oil and corn producers of the High Plains.

As The Houston Chronicle reports, Mexico has upped the allowable percentage of ethanol from 5.8 percent to 10 percent, which is also the level currently allowed in the U.S. Now, some of the world's biggest biofuels companies are jockeying for a position within what is the world's fourth largest gasoline market.

Energy consultant Kristy Moore said, “Everyone in the fuel and gasoline business is down in Mexico right now. . . . Every major oil company.”

Mexico isn’t the only country to turn its attention to ethanol.

Modern automobiles don't run well on pure gasoline, and that means much of South America and Asia may soon see a need for more biofuels.