RFA finds ethanol saves consumers money at the pump


In Washington, D.C., ethanol is helping to offset higher prices, and 10% ethanol blends (E10) alone could save consumers at least $39 billion this year, according to an analysis released by the Renewable Fuels Association. The analysis of wholesale gasoline and ethanol price data shows that blending E10 has reduced wholesale gasoline prices by at least 27 cents per gallon, or 14%, compared to ethanol-free gasoline (E0). At current prices, E10 would save consumers $39 billion, or $306 per household, this year.

The savings estimates are conservative, the analysis noted, since they exclude the additional aggregate cost savings that results from ethanol’s extension of the U.S. fuel supply and displacement of crude oil demand. The analysis points out that ethanol prices in the reference market of Omaha, Neb., have been equivalent to roughly half of the price for E0 gasoline so far this year.