The latest average cost for a gallon of gas nationwide, as reported by AAA, is $3.88, but it would already be $4.00 a gallon without ten percent ethanol.

According to the Renewable Fuels Association (RFA), based on 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.

I talked with RFA Association Vice President of Research and Analysis Geoff Cooper who explains the math behind that calculation (which you can also find on the RFA website) and how the 45 cent per gallon tax credit creates additional savings at the pump for consumers in this edition of “The Ethanol Report.”

Listen to or download the Ethanol Report on gas prices here: Ethanol Report on Gas Prices