Industry warns gas prices would rise 89 cents without ethanol

St. Petersburg Times: PolitiFact.com

Ethanol reduced gas prices by 89 cents per gallon in 2010, and if ethanol disappeared, gas prices could rise by as much as 92 percent.
Renewable Fuels Association on Wednesday, June 22nd, 2011 in an advertisement in Washington, D.C., Metro stations

We recently noticed an advertisement in the Washington, D.C. Metro system that made a striking claim about ethanol -- an alcohol made from fermented corn that is added to gasoline, usually comprising 10 percent of a gallon.

First, some background to help explain the context of the ad. Supporters and critics of ethanol have battled for years over the wisdom of continuing longstanding ethanol subsidies. Currently, the Volumetric Ethanol Excise Tax Credit, or VEETC, offers a credit $0.45 for every gallon of ethanol blended with gasoline. The credit had been scheduled to expire at the end of 2010, but Congress extended it for another year.

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