RFA says US households saving $200-$400 on gasoline via ethanol; fuzzy math or real savings?

Biofuels Digest
June 01, 2010 Jim Lane

In Washington, the Renewable Fuels Association issued a white paper on gasoline and ethanol prices, concluding that “the average American household is saving approximately $200‐400 per year on gasoline because of the inclusion of ethanol in the U.S. fuel supply.” The RFA cites the ethanol blenders tax credit, and the spread between ethanol and gasoline prices as the underlying cause.

Opponents of ethanol have responded that gasoline savings are offset by increases in taxation and the cost of ethanol.

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