Iowa flex-fuel drivers (FFVs) have set a new E85 record with the purchase of 2,707,231 gallons of E85 in the first quarter of 2014, according to data released by the Iowa Department of Revenue. The more than 2.7 million gallons of E85 sold is a new first quarter record, and nearly a 48 percent increase over the first quarter of 2013.
“As the EPA debates slashing 2014 requirements under the Renewable Fuel Standard (RFS), the cost-savings of ethanol-blended fuels continues to grow and Iowans are purchasing E85 at a record rate,” said Iowa Renewable Fuels Association (IRFA) Executive Director Monte Shaw. “When you follow-up a record year for E85 sales in 2013 with record E85 sales in the first quarter of 2014, it’s further proof that when given the choice, consumers will choose cleaner-burning, lower-cost ethanol blends.”
Yesterday, IRFA also reported the largest wholesale price spread between E85 and regular gasoline since it began tracking prices through its Weekly Iowa E85 Wholesale Price Listing Service. On Monday, June 23, the average price of regular 87-octane gasoline without ethanol was $3.23 per gallon at the Des Moines Terminal, according to OPIS. Meanwhile, Absolute Energy, an ethanol plant in St. Ansgar, Iowa, was selling E85 for $1.64 per gallon.
“At the wholesale level, E85 is being sold for nearly half the price of regular gasoline – that’s right, it’s nearly 50 percent cheaper,” added Shaw. “With Fourth of July travel just around the corner, it will literally pay for flex-fuel vehicle owners to find E85 along their route.”