Ethanol Not to Blame for Higher Gas Prices

Cindy Zimmerman

Gas prices are up, but ethanol is not to blame, according to an analysis by the Renewable Fuels Association.

Gas prices at the pump have been steadily increasing since the end of January, and some have speculated that it is due to ethanol transportation issues following the Midwest floods in March. But RFA found that it is mainly because of a surge in crude oil prices since the start of the year, combined with normal seasonal gasoline pricing, as well as refinery maintenance and unplanned outages.

Ethanol prices are at a steep discount to gasoline prices (and to other sources of octane), and inventories have recently been at record levels. While transportation challenges caused issues with delivery to isolated locations in the immediate aftermath of the floods, production was not significantly affected. In the vast majority of the country, ethanol has been helping to hold down gasoline prices for consumers.
Read the analysis.

Ethanol, Ethanol News, RFA