25 Sep '13, 11am

#electricvehicle Official: RFA: ethanol cuts gas prices by up to $1.50 a gallon

#electricvehicle Official: RFA: ethanol cuts gas prices by up to $1.50 a gallon

The Renewable Fuels Association (RFA) is giving us up to 2.6 trillion reasons why blending ethanol with the US fuel supply are a good thing for the economy. Citing former Ford and Carter administration energy advisor Philip Verleger, the RFA estimates that gas would be between 50 cents and $1.50 more per gallon than its costs today. That means that Americans are saving $700 million a year on the low end and $2.6 trillion on the high end. Getting more to the root of the issue, Verleger says oil prices would be as much as $40 a barrel higher than they are now if the ethanol wasn't blended in and notes that US oil use is reduced by about the amount produced each year in Ecuador because of the ethanol requirement. AAA pegs the national average at about $3.50 a gallon and the price for a barrel is around $100-$110. Of course, Verleger merely provides a yin to the yang represent...

Full article: http://green.autoblog.com/2013/09/25/rfa-ethanol-cuts-gas...

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