3 Ways Ethanol Brings Down Gas Prices

May 23, 2022

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by Cheri Bustos (D IL 17th) (FOXBusiness) A solution to high gas prices is being planted across the American Heartland -- ... I’m lucky enough to represent more than 7,000-square miles of Northwest and Central Illinois — home to nearly 10,000 family farms and seven biofuels plants in and around our Congressional District. These plants support American jobs and drive economic growth in our rural communities as they turn corn grown right here in the Heartland into ethanol for cars and trucks.

When we blend ethanol into our gasoline, it reduces harmful emissions almost in half, brings down the price for consumers by up to 60 cents per gallon and supports American farmers.

Most Americans are more focused on the dollars and cents clicking upward on the pump than the label on it as they’re filling up. But the E10 and E15 labels can make a whole lot of difference in how much you shell out. What these labels tell us is how much ethanol has been blended into the gasoline we’re buying. For example, E15 is fuel containing 15 percent ethanol and 85 percent gasoline. And if you’re paying attention, you’ll see that fuel with higher blends of ethanol is much easier on the pocketbook.

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So why is it that higher ethanol blends can bring down gas prices?

Ethanol is home-grown and American-made.

While importing foreign oil involves costs for transportation and tariffs, biofuels like ethanol are grown and produced right here in America. So instead of supporting oil moguls in the Middle East or Russia, we’re boosting demand for corn grown by American farmers, and produced at plants that support jobs and prosperity here at home.

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Ethanol blending increases America’s fuel supply.

Part of the reason gasoline prices are so high right now is because of high demand and low supply. But when we add ethanol to the gasoline we already have, it means there’s more overall fuel to go around. By bolstering the low supply of oil with the increased use of corn ethanol, we can increase our overall fuel supply and bring down prices across the board.

Ethanol is less expensive per gallon.

Not only does ethanol strengthen our fuel supply, but it also reduces the cost of each gallon of gasoline you buy at the pump. Because ethanol is less expensive per gallon than traditional gasoline, a gallon of E15 blended gas can be up to 50 to 60 cents per gallon cheaper.

With the average American purchasing 421 gallons of gas a year, this could mean savings up to $252 annually for consumers!

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The U.S. Environmental Protection Agency advises that E15 is safe to use on vehicles manufactured from 2001 through today. And because we’ve been blending ethanol into gasoline for decades, automakers have already made sure that seals, hoses and gaskets in the vehicles they make can handle higher blends of ethanol, like E15.

Would more corn used for ethanol reduce our food supply or increase prices at the grocery store?

The short answer is no. If you’ve ever driven around the Heartland, you’ll see that we have plenty of corn to go around! And the corn used for ethanol isn’t what you eat off the cob. What you may not know, is that the feed corn used for ethanol becomes nutrient-dense distillers grain after production. This is then used as the second-largest source of animal feed in the United States!

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I’m continuing to work with my colleagues on the bipartisan House Biofuels Caucus to secure year-round sales of E15, and pass the Home Front Energy Independence Act, which would expand the production and availability of American biofuels to help lower fuel costs for hardworking men and women across the country. READ MORE; includes VIDEO

Ethanol may bring down gas prices: Sen. Grassley (Fox Business; includes VIDEO)

Gas prices will surpass $6 nationwide by August, JPMorgan says (Fox Business; includes VIDEO)

Unleaded 88, a.k.a. E15: A different type of fuel could help you save at the pump (WKYC)

E15 Gasoline Can Save You Money at the Pump: The cost reduction overcomes the energy loss. (Wall Street Journal)

Excerpt from WKYC: There are a few gas stations in town offering up a new blend of fuel that can offer some savings at the pump. It’s often called Unleaded 88, or E15 as it's known in the industry. We spotted Unleaded 88 costing a full 20 cents less than "regular" 87 octane.

But is it a safe option for you to use in your car?

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To our surprise, the answer for most people is yes.

"Most cars can use it according to the EPA. The EPA says if your car is 2001 and newer, you can use it," explains DeHaan (Patrick DeHaan, head of petroleum analysis at GasBuddy).

The EPA has deemed Unleaded 88 safe for over a decade and many car manufacturers have since agreed. But be sure to check your owner's manual if you're not sure. You'll want to verify the minimum octane required and make sure your car can handle 15% of ethanol.

And remember, this is only for cars and SUVs.

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Technically, gas with more ethanol could potentially lower your gas mileage by about 2%, but experts say the savings is still worthwhile. Finding this new type of fuel can be tough, however, as only 2% of the stations nationwide carry it. That could change with prices continuing to rise. READ MORE; includes VIDEO

Excerpt from Wall Street Journal: A letter (May 10) questions the savings from E15 gasoline (gasoline blended with 15% ethanol) versus mainstream E10 gasoline, claiming that reductions in miles per gallon with E15 will exceed cost savings. I have studied the impact of fuel composition on engine operation for decades. It’s correct that E15 contains less energy than E10, around 1.5% less. But assuming gasoline at $4 a gallon, this reduction in energy would be overcome by cost reduction when E15 gasoline costs 6 cents or more per gallon less than E10.

Savings with E15 generally far exceed 6 cents a gallon compared with E10, producing a welcome reduction in operating cost per mile for consumers. Moreover, the 1.5% penalty with E15 is a worst-case scenario. Octane enhancement with E15 coupled with reduced intake temperature (heat of vaporization) typically offsets some of the 1.5% reduction in fuel economy. Finally, energy security from an American homegrown fuel, coupled with greenhouse-gas-emissions reductions, further support E15 as the preferred choice. --Andrew Randolph, ECR Engines, Welcome, N.C. READ MORE