Ethanol keeping gas prices below $4/gallon: RFA
Biofuels Digest
Jim Lane May 2, 2011
In Washington, the Renewable Fuels Association reports: “Based upon current market conditions and federal renewable fuels policy, 10 percent ethanol blends (E10) are keeping gasoline prices $0.12 per gallon cheaper than they otherwise would be. As AAA reports, the current average price for gasoline is $3.88 per gallon nationwide. Without ethanol, gas prices would average $4.00 per gallon nationally. These savings do not take into account the downward pressure ethanol puts on the oil market by virtue of being 10 percent of the nation’s gasoline supply. Previous estimates of that impact show ethanol is keeping gasoline prices up to $0.60 lower per gallon than they otherwise would be.”
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