A Reason to be Thankful

Here’s the bad news:

Americans will take a hit in their wallet as well as their waistlines this Thanksgiving holiday. The run up in oil prices over the past year is forcing fuel prices as well as food prices ever higher.

An analysis by John Urbanchuk, a director at the economic consulting firm LECG, LLC, released today estimates that Americans will fork over $520 million more this year than last year on their Thanksgiving travel. That means, based on the national gas price average of $3.11, an increase of 39 percent over 2006 just to drive over the hills and trough the woods to Grandma’s house. That is $520 million that won’t be spent on Black Friday, the traditional kick-off to the holiday shopping season. More specifically, it will cost the average family an extra $17 for roundtrip travel for Thanksgiving dinner.

Now, here’s the good news:

Where gasoline marketers are blending ethanol, drivers are realizing a savings at the pump. Today, ethanol is blended in roughly half of the nation’s gasoline. Given the current economics of ethanol and gasoline, the increasing availability of ethanol is helping keep gasoline prices up to $0.15 lower than they otherwise might be.

“Americans are literally over a barrel this holiday season as oil prices are likely to remain high and gasoline will no doubt follow suit,� said Bob Dinneen, president of the Renewable Fuels Association. “Were it not for the growing availability of ethanol, Americans would be spending a whole lot more to go over the river and through the woods this holiday season.�

Without ethanol blended at ten percent with gasoline (E10), the average pump price of gasoline would be as much as $0.15 per gallon, or 4.7 percent higher than current levels and the average American household would pay $19.68 more than last year for the Thanksgiving trip.

Have a glorious Thanksgiving!