Ethanol Brings Gas Prices Down, Saves Consumers Money
As controversial as corn-grain ethanol is, it may be offsetting high oil prices and saving consumers between 6 and 9¢ per gallon on fuel.
Research by the American Coalition for Ethanol (or ACE - totally unbiased, I know) found that gasoline-ethanol blends are selling 10-35¢ lower than non-blended gasoline, which after factoring in the ethanol-blender’s tax credit amounts to about 6 to 9¢ per gallon.
This may also help explain why diesel is so much more expensive than gasoline right now:
“The price of gasoline isn’t rising as quickly as the price of diesel, partly due to the fact that there’s an alternative to gasoline – ethanol – that’s adding more than 2 million gallons a day to our nation’s fuel supply,” notes Ron Lamberty, ACE’s vice president/market development.
