Under Executive Order No. 12044, Improving Government Regulations, the Department of Energy is required to prepare a regulatory analysis of each regulation issued by the agency which may ave a major economic impact on the general economy, individual industries, geographical regions or levels of government. This analysis has been prepared to establish the economic impact of the mandatory petroleum price regulations as proposed for revision under the title: Unleaded Gasoline Production Incentives, Docket No. ERA-R-79-30. The purpose of the proposed amendments is to increase the production of unleaded gasoline by US refineries. A regulatory analysis should account for both positive and negative economic impacts. In this analysis negative impacts or costs are defined as increased prices to consumer and positive impacts or benefits are defined as the additional volumes of gasoline produced as a result of the proposed rule. In this analysis the three aspects of the proposed rule are dealt with separately and in the following order: 1. the production incentive; 2. the attribution to gasoline of the cost of additives and chemicals used to make gasolines; and 3. the replacement of the nearest octane number provision by a requirement to use the weighted average May 15, 1973 selling price for all leaded gasoline as the base for computing the imputed May 15, 1973, unleaded gasoline price. The imputed price is then adjusted to reflect the octane number of the specific unleaded gasoline sold. These three aspects of the proposed rule can be dealt with separately because there is no necessary connection between them. (ERA citation 07:003259)