1. I think I heard the cost of the switch from MTBE to ethanol in the refineries has something to do with what you're seeing. But, since I'm in flyover country where MTBE has never been used, I haven't paid much attention to it.
2. It could be that the supply of ethanol cannot keep up with the sudden increase in demand. I do know many new ethanol plants are currently in various stages of planning/construction.
I operate an ethanol "plant". I have two varieties as output: wine and beer. The yeast I use produces an alcohol content of around 13% by volume for the wine, and 6% for the beer. Now if the feds would only remove the restrictions for distilling it I would be a much happier brewer!