According to the Renewable Fuels Association (RFA), ethanol will save Memorial Day travelers this year $440 million on gas.

As the summer season kicks off this weekend, AAA estimates that almost 31 million Americans will take a trip with an average distance of 792 miles, even though gas prices are up 40 percent, averaging $3.91, compared to $2.85 this time last year. RFA says ethanol means they will actually be spending considerably less on gasoline than would otherwise be the case.

RFA’s analysis, based on AAA estimates and the Center for Agricultural and Rural Development (CARD) study on ethanol and gas prices, determined that “the average American family traveling this Memorial Day will save more than $31 simply due to the fact that ethanol is holding gasoline prices down. Aggregate gasoline savings due to ethanol this weekend will be $440 million, based on AAA estimates of average trip length.”

Read the analysis by RFA VP of Research Geoff Cooper on the E-xchange blog.