Abstract: A system and method is provided for blending butane with gasoline at petroleum tank farms, immediately before distribution to tanker trucks. The invention provides a method for blending gasoline and butane at a tank farm comprising: (a) drawing a gasoline stream from a tank of gasoline; (b) drawing a butane stream from a tank of butane; (c) blending the butane and gasoline streams to form a blend; and (d) dispensing the blend. The blending process can be controlled to ensure that the vapor pressure of the blended gasoline meets vapor pressure requirements of environmental regulations. Information generated by the blending process can be used to efficiently forecast butane purchasing requirements, and to generate regulatory reports.