Harkin: Gas cheaper because of ethanol

The Hill

Leading The News
By Ian Swanson
Posted: 07/24/08 11:39 AM [ET]

Ethanol is keeping gas prices as much as 40 cents cheaper, according to Sen. Tom Harkin (D-Iowa), one of the Senate’s top supporters of corn-based renewable fuels.

As a result, the Bush administration should deny Texas Gov. Rick Perry’s (R) request that the Environmental Protection Agency (EPA) cut in half the federal mandate requiring the oil industry to blend 9 million gallons of ethanol into the nation’s gas supply, Harkin said.

“Ethanol is keeping gas 24 to 40 cents cheaper than it otherwise would be,” Harkin said in a Thursday conference call with reporters. “So consumers are benefiting from that, and that should not be overlooked.”

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