Following up on Frank's post below, here in the DFW area we have plenty of spot shortages, MTBE tanks have to be scrubbed, and the public was never informed that you can't blend ethanol and gasoline in Iowa and ship it to Atlanta or DFW, the blending has to take place just before delivery of the gasoline to the station. Unfortunately, the switchover has not been very fun for those who actually have to implement the legislation that Congress and the President, in their prescient wisdom, pass.

From OPIS:

Ethanol marketers were not told how long the embargo Union Pacific placed on the Dallas-area Amber terminal is expected to last, but they have been told it will be in place as long as needed for the railroad to be able to manage the flow of ethanol to the location. Sources said that railcars were backed up for a mile or more going into the terminal located just north of Fort Worth.

The change over to the ethanol mix might impose short-run price spikes and supply shortages which would be expected to work out over the next few weeks/months. On the other hand, if the logistics of ethanol blending are such that any returns to scale at the refiner level are essentially lost at the blending point, there might not be a reduction in price over the longer term.