Filed under: Ethanol, Legislation and Policy, USA



The Renewable Fuels Association (RFA) is giving us up to 2.6 trillion reasons why blending ethanol with the US fuel supply are a good thing for the economy. Citing former Ford and Carter administration energy advisor Philip Verleger, the RFA estimates that gas would be between 50 cents and $1.50 more per gallon than its costs today. That means that Americans are saving $700 million a year on the low end and $2.6 trillion on the high end.

Getting more to the root of the issue, Verleger says oil prices would be as much as $40 a barrel higher than they are now if the ethanol wasn't blended in and notes that US oil use is reduced by about the amount produced each year in Ecuador because of the ethanol requirement. AAA pegs the national average at about $3.50 a gallon and the price for a barrel is around $100-$110.

Of course, Verleger merely provides a yin to the yang representing the arguments against boosting ethanol in the US fuel blends. Petroleum lobbyists have been hammering home an argument that gasoline with higher ethanol blends may damage older cars and motorcycles while pulling from the country's food supply. The American Petroleum Institute (API) went as far as trying to ban sales of gasoline blended with 15 percent ethanol (E15). While that effort was rejected by the US Supreme Court in June, some folks have said oil companies are still making it difficult for service stations to get access to E15. As of early this month, the RFA said there were only 30 stations across the US selling E15. Check out the RFA's press release below.Continue reading RFA: ethanol cuts gas prices by up to $1.50 a gallon

RFA: ethanol cuts gas prices by up to $1.50 a gallon originally appeared on AutoblogGreen on Wed, 25 Sep 2013 07:57:00 EST. Please see our terms for use of feeds.



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