Ethanol: Saving You Money At The Pump

According to a study recently released by the Iowa State University Center for Agricultural and Rural Development, U.S. ethanol saves drivers money at the pump.  The study tracked historic data over the past decade and looked specifically at 2010.  The study concluded that using ethanol is saving consumers money at the pump.

In the study, professors Dermott Hays and Xiaodong Du find that “the use of ethanol reduced wholesale gasoline prices by an average if $0.89 per gallon in 2010.”  The Renewable Fuels Association extrapolates that, in 2010 alone, ethanol reduced the average American’s household gasoline bill by $800.

• Gas prices could almost double to “historic proportions” if ethanol production immediately halted. 
• Drivers saved an average of $0.25 per gallon from 2000-2010.
• Annual savings from 2000-2010 averaged $34 billion dollars