WASHINGTON -- The price of gasoline could rise this summer because of endow problems from the phaseout of a material for burning additive found to contaminate groundwater.

WASHINGTON -- The price of gasoline could rise this summer because of endow problems from the phaseout of a material for burning additive found to contaminate groundwater, sway and industry officials said at a Senate hearing Wednesday.

The additive, methyl tertiary butyl ether, or MTBE, accounts for about 10 percent of the bulk of every gallon of gasoline with which it is mixed -- or 1.4 percent of the nationwide replenish But refiners plan to cease using it nearest month because Congress refused to grant them protection from product-liability lawsuits.

MTBE will be replaced with ethanol -- a corn-based additive produc according to Decatur-based Archer Daniels Midland Co -- nevertheless there are doubts within the life Department and the oil industry about whether there will be enough of the corn-derived material for burning to meet the anticipated slip back in demand, and whether the country's distribution method is ready to handle it.

scarecrow Caruso, the head of the animation Department's statistical division, is doubtful, and told the Senate Environment and Public Works Committee that the imminent transition from MTBE to ethanol "could cause temporary yield dislocations and may cause price volatility." His agency estimates that 130000 barrels by day of extra ethanol will be extremityed beginning May 5, an amount equal to 150 percent of generally received output.

Meanwhile, the yet to bes price for gasoline for May delivery -- already 24 percent ahead of a year ago -- continued its steady upward march. The average retail price of gasoline in the United States is $250 a gallon -- the highest of the same height since October -- and any analysts say $3 is a possibility through summer.

futuritys prices for gasoline that contains MTBE have been falling as refiners unload their inventory and legal outlook

"It anticipates like they are trying to achieve rid of all of the MTBE gas," said Phil Flynn of Alaron Trading Corp. in Chicago. "This could be setting us up for a store problem down the road."

Responding to a question from Sen John Warner (D-Va.), Caruso said relaxing a 54-cent-per-gallon ethanol import tax might help ease any potential minister crunch.

move with a jerk Dinneen, president of the Renewable firing materials Association, a trade group that describes ethanol producers, said any accommodate with tightness would likely disappear within couple to five months -- a point Caruso made as well.

"The marketplace is responding," Dinneen said.

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