Big oil says biofuels are responsible for the price you pay at the pump. OPEC President Chakib Khelil blamed ethanol for 40 percent of the recent run-up in crude oil prices," according to MarketWatch reports.

'The price of petroleum will continue to rise because of ethanol, the weak dollar and political tensions,' the oil cartel's president was quoted as saying over the Independence Day Weekend.

"The price of oil will rise again in the coming weeks," said Chakib Khelil, the Algerian energy minister and current president of the Organization of Petroleum Exporting Countries. "We have to follow the evolution of the dollar, because a 1 percent fall in the dollar means $4 more on the price of oil."

Khelil said the weak dollar and geopolitical worries are responsible for 60 percent of the rise in crude prices, but also said that 'the intrusion of bioethanol on the market' was alone responsible for the other 40 percent.

The Illinois Corn Growers Association responded to the report by saying: "Apparently Mr. Khelil slept through Economics 101 and missed the basic concept of supply and demand. Less oil production means higher crude prices. More ethanol means lower gasoline prices. Pretty simple concept and currently resulting in consumers saving 30 cents a gallon at the pump."

The Association said Khelil didn't explain why more ethanol would drive crude prices higher, but said the dollar's decline was because the Federal Reserve had kept interest rates low.