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RFA analysis shows ethanol slices prices at the pump

New analysis shows as retail gas prices are forecast to climb to levels not seen in four years, ethanol could save consumers nearly $40 billion dollars at the pump.

Each year ahead of the summer driving season, the Renewable Fuels Association (RFA) analyzes the relationship between gasoline and ethanol prices to determine potential cost savings.

RFA executive vice president Geoff Cooper tells Brownfield they look at fuel prices at the wholesale level.

“And what we’ve seen so far this year is ethanol prices have been close to half of the price of gasoline.”

The RFA data shows blending 10 percent ethanol reduces gas prices by a minimum of 27 cents per-gallon, saving the average household more than $300 dollars per year.

Cooper says the savings would be even greater if higher ethanol blends were allowed between June 1^st and September 15th.

“We do think the stars are aligning to make a really good case for RVP parity and the allowance of E15.  It obviously helps our industry with demand, it helps the corn industry with increasing demand at a time when prospects aren’t so great.  But probably most importantly, it helps consumers with lower gas prices.”

RFA determined consumers who are blocked from accessing E15 because of Reid Vapor Pressure restrictions are unnecessarily spending at least an extra 7 cents per gallon on gasoline.