In response to a news story from FOX Tampa Bay claiming ethanol raises gas prices, RFA reveals the truth that in fact gas mileage reduction from ethanol is only about 3%, the equivalent of driving on poorly inflated tires. Additionally, without ethanol, prices at the pump would be undoubtedly higher.
Posted in Ethanol
In a recent Letter to the Editor of the New York Times, I highlight the benefits the use of ethanol fuel and how increased use and production has dramatically reduced our foreign oil imports and dependence.
Government data released today showed the U.S. exported 76.3 million gallons (mg) of ethanol (denatured and undenatured, non-beverage) in January. This marks the highest total ever for the first month of the year, which is typically a slow month for U.S. ethanol exports.
Gas prices are dominating the headlines and we have yet to embark on the summer driving season, the traditional kick-off to high gas prices. With Congress holding hearings this week on gas prices, the President holding a press conference today, voters taking to the polls today, and the energy world gathering in Houston this week, we have analyzed the data to provide background information on the downward pressure exerted by domestic ethanol production on gasoline prices.