The availability of ethanol is currently reducing the cost of gasoline by between 6 and 9 cents per gallon, according to data collected by the American Coalition for Ethanol.
“The growing availability of ethanol across the United States is reducing the cost of gasoline by up to nine cents a gallon,” said Brian Jennings, Executive Vice President of ACE. “While gas prices are still causing pain at the pump, ethanol is alleviating some of the pressure of hundred-dollar oil. Without ethanol, gas prices would likely be even higher.”
According to recent price reports by Axxis Petroleum and the Oil Price Information Service, ethanol for blending is selling for as much as 10 to 35 cents lower than gasoline, depending on the market. Factoring in the blender’s tax credit, this means that the wholesale cost of E10 is between 6 and 9 cents less per gallon than gasoline.
“The price of gasoline isn’t rising as quickly as the price of diesel, partly due to the fact that there’s an alternative to gasoline – ethanol – that’s adding more than 2 million gallons a day to our nation’s fuel supply,” noted Ron Lamberty, ACE’s Vice President / Market Development.
According to today’s AAA fuel price report, the national average price of diesel reached $4.029 a gallon, while the national average price of gasoline remains at $3.26 for regular and $3.587 for premium.