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Push for E-15 Waiver Continued by RFA

Substantial savings for drivers would be achieved with higher blending.

Compiled by staff

Published: Apr 19, 2010

The Renewable Fuels Association reports that American drivers could be saving up to 19 cents per gallon if more ethanol were allowed in gasoline. Based on current wholesale prices, ethanol is selling for 70 to 80 cents less than gasoline before the federal tax incentive for blenders is taken into account. This means gasoline blended with the statutory limit of 10% ethanol should cost at least 7-8 cents per gallon less at the pump than conventional gasoline without ethanol.

If a 15% mix of ethanol were permitted in each gallon of gasoline drivers could be saving up to an additional nickel on every gallon. And, according to RFA, the savings are even greater when the value of the 45 cent per gallon tax credit claimed by gasoline blenders is passed through to consumers. Based on E-15, the fuel would be 19 cents per gallon less expensive than conventional gasoline without ethanol at today's prices. This translates to a savings of about $150 per year for the average driver.

According to Bob Dinneen, president of the Renewable Fuels Association, it's time for EPA to update its fuel regulations and allow for the use of 15% ethanol blends for all vehicles, giving American consumers the break at the pump they deserve. EPA has indicated that any waiver it would grant would be limited to model year 2001 and newer vehicles. Dinneen says any such decision would cause confusion in the marketplace.

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Tagged: ethanol, EPA

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How can the ethanol blend save any money when it takes at least 20% more of it to drive the same distance. May be it would be good to tell the rest of the story. Any time I put the ethanol blend in my car the mileage goes down drastically. It is time to let ethanol stand on the merits and quit pumping it up with our tax dollars. By the way where do those incentive dollars come from. Wake up people. Hearley Dockham Pavillion, Wyoming
Posted by H. Dockham on April 19 at 8:58 AM

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Push for E-15 Waiver Continued by RFA

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