May 8 2008
With gas prices in some cities nearing $4 a gallon, new research has confirmed that ethanol is saving U.S. drivers money. On the coasts, where gas prices are especially high, drivers are saving an average of $142 a year on regular unleaded. In the Midwest, they are saving $241 a year.
Researchers at Iowa State University (http://www.foodandfuelamerica.com/2008/04/new-report-shows-ethanol-saves-u p-to-40.html) recently studied ethanol's impact on gasoline prices around the country and concluded that, by expanding the fuel supply, ethanol has made gas cheaper by 29 cents a gallon to as much as 40 cents a gallon.
The researchers found that on the coasts, drivers save an average of 23 cents per gallon. The savings are significant in other parts of the country, too: On the Gulf Coast, it is 25 cents per gallon; in the Rocky Mountain States, 17 cents; and in the Midwest, where U.S. ethanol production is concentrated, drivers save 40 cents a gallon.
Renewable Fuels Now considered Federal Highway Administration figures on vehicle fuel efficiency and average miles driven per year to extrapolate these average yearly savings thanks to ethanol:
- East Coast: $142.42
- Midwest: $241.44
- Gulf Coast: $150.36
- Rocky Mountains: $104.52
- West Coast: $142.42
For a detailed chart showing average annual savings for drivers of different vehicle types in every region, go to http://www.renewablefuelsnow.org.
For a copy of the Iowa State University report, see http://www.card.iastate.edu/publications/synopsis.aspx?id=1076.