New Report Shows Ethanol Saves Drivers Money
Memorial Day is right around the bend and this weekend marks the start of summer driving. According to AAA, nearly 28 million Americans are expected to travel this weekend alone, a number curtailed due to environmental concerns as well as concerns caused by the Gulf of Mexico oil spill. Yet there is good news for drivers as they are saving an average of $105 per year because of ethanol. This according to a report released today by the Renewable Fuels Association (RFA).
The blending of ethanol into America’s fuel supply is saving consumers approximately 10 cents per gallon as compared to straight gasoline prices. According to RFA, at the wholesale level, ethanol has been selling at a 50-70 cent per gallon discount to gasoline before the 45 cent per gallon blender’s credit is taken into account. As a result, at a 10 percent ethanol blend (E10), the average American household is saving up to $105 per year.
“Domestic ethanol blends are a great bargain for consumers, saving them money at the pump while allowing them to support a truly American industry,” said RFA Vice President of Research Geoff Cooper. “Simply filling up with E10 instead of regular gasoline saves families money at a time when economic concerns and the Gulf of Mexico oil spill are front of mind. Ethanol is part of the solution to both concerns.”
On another front, as the grills get fired up, ethanol continues to be incorrectly blamed for higher prices of meat due to the claim from ethanol opponents that grain prices are higher. Yet the study shows that grain prices are not higher. In fact, corn prices are nearly 20 percent lower than one year ago and less than half of what they were during the oil-fueled speculative commodity bubble in the summer of 2008.
In a recent column, influential commodity analyst Rick Kment writing for DTN said, “Ethanol continues to be the whipping boy, but blaming the fuel for today’s higher meat prices just doesn’t add up. In the past four months live cattle futures have increased 25 percent while corn prices have fallen nearly 13 percent.”
Cooper on behalf of RFA added, “Finally, and most importantly, Memorial Day is a hallowed holiday in America when the nation pauses to remember those defending and those who have defended this nation. We pay special tribute to those individuals and families who made the ultimate sacrifice. The RFA wishes to extend its appreciation on behalf of everyone involved in America’s ethanol industry.”
9 Comments »
Richard
This story is 50% Bull Shxt. Higher demand for corn to make the ethanol causes prices to be higher. Lower energy units per gallon of Ethanol verses Gasoline makes the gas mileage on your vehicle lower offsetting the lower price of the mixed fuels. How much energy and water does it take to make each gallon of Ethanol? I’ll bet without significant calculations it’s more than we get out of the gallon of Ethanol. Bottom line Ethanol is a multi billion dollar industry that has done nothing to save the US consumer money, or significantly improve gas mileage. It just makes money for investors (through government subsidies), and the government.
Richard
Yes, using ethanol in gasoline does lower your milage. It also produces less GHG. How much energy and water does it take to make a gallon of gasoline? Same question you have only reversed. Ethanol has a better ratio. Ethanol supports american jobs and profits stay here. Can you say the same about all gasoline?
Frank
Lets “follow the money”. The money doesn’t go into the consumer’s pockets.
With the Blender’s Credit there are 2 compelling reasons for the blenders to cheat and “steal” from the consumer
1. by blending at greater than 10% ethanol the net cost of the RFG product drops and the blender keeps this money
2. by blending in more ethanol than 10% the blender gets more “Blender’s Dollars”.
So fellow consumers we are being ripped off twice.
SacramentoE85
Richard @ 8:03, corn ethanol is only the starch part of corn; that’s 1/3 of the kernel or bushel. Cows waste much of that starch in a corn kernel anyway-their stomachs aren’t designed to digest it and they even die from too much corn. They fare better with the distillers grain coproduct. We have too much corn in recent years anyway and export record amounts. The addition of ethanol to the fuel market drives down the price of fuel; remove ethanol and the tighter fuel supply would drive up fuel prices. The reduction of fuel economy in E10 is almost nonexistent in research studies, while Merril Lynch and others found that ethanol keeps fuel prices 15% lower than they would be without. Only one sixth of a gallon of petroleum is used in producing a gallon of ethanol. If we now had the capacity to turn our domestic petroleum production into ethanol, we would replace all of our petroleum imports and keep hundreds of billions of dollars in the U.S. economy, annually, and with cleaner air. Ethanol keeps us from importing more tar sand and oil shale petroleum, which uses far more water per gallon than ethanol and makes the water very toxic. Ethanol is a huge winner over tar sand and oil shale petroleum, which it is replacing today.
Fill Up and Save This Memorial Day - Domestic Fuel
[...] to celebrate than friends, food and family – savings at the pump due to lower priced ethanol. According to new data, drivers will save nearly 10 cents per gallon if filling up with [...]
Fill Up and Save This Memorial Day
[...] to celebrate than friends, food and family – savings at the pump due to lower priced ethanol. According to new data, drivers will save nearly 10 cents per gallon if filling up with [...]
Fill Up and Save This Memorial Day | Alternative Fuel | Alternative Fuel Audio, Video & Alarms Automotive Parts Car Loans Car Restoration
[...] to celebrate than friends, food and family – savings at the pump due to lower priced ethanol. According to new data, drivers will save nearly 10 cents per gallon if filling up with [...]
Advanced BioFuels USA » New Report Shows Ethanol Saves Drivers Money
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M. Jones
Figures lie and liars figure, How does use math and physics to demonstrate the false religion of Global Warming and allegedly renewable energy? The advocates use emotions and “cherry-picked” data. And if they are called on the carpet with facts and figures, they use tactics of name calling and attempts to discredit their opponent. They are incapable of logical argument. It is the same junk science which was revealed in the Hoaxenhagen Global Warming emails which revealed that the liars altered the data to figure the outcome that their political/religious agenda demanded (so AlGORE and his cronies could make billions in the cap and trade scheme they developed).
Economics will force people to make choices that will be distasteful as well as destabilizing.
The hypocrisy of those politicians (such as ALGORE) , both Demo and Rep, who are ignorant of science and jump on whatever bandwagon will get them re-elected will soon become apprent even to the most poorly educated American.
And the invincible ignorance of writers such as this article’s author will only be corrected when they too must work IN AN HONEST LIVING, not as propaganda producers.
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