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Ethanol Supply Boost Could Lower Gas Prices

Ethanol Supply Boost Could Lower Gas Prices


By Andi Anderson

The Renewable Fuels Association (RFA) is calling on federal officials to expand the use of ethanol in the U.S. gasoline supply to help reduce fuel prices and strengthen the nation’s energy security.

"Adding larger volumes of low-cost ethanol to gasoline is a proven solution for reducing fuel prices and helping to insulate the U.S. market from global supply shocks," wrote RFA President and CEO Geoff Cooper in a letter to Interior Sec. Doug Burgum. "A series of simple deregulatory actions could rapidly unleash billions of gallons of additional fuel volume, providing relief at the pump for hardworking American families."

Cooper said ethanol currently offers a clear price advantage compared to gasoline. On March 6, ethanol was priced about $0.84 per gallon lower than gasoline at the wholesale level, which represents a discount of roughly 31% . Recent retail data also shows E15 selling for about $0.27 per gallon less than the commonly used E10 blend.

The association believes that expanding ethanol use could help shield the U.S. fuel market from global energy supply disruptions while also lowering costs for drivers.

To support this effort, the RFA recommended that the Environmental Protection Agency issue emergency summertime waivers allowing E15 to be sold nationwide. These waivers would permit a 1-psi Reid vapor pressure tolerance for E15 fuel, as well as for E10 in certain regions that previously declined the waiver program.

The RFA also urged regulators to simplify rules for gasoline stations that sell E15. The organization proposed eliminating current misfuelling mitigation requirements and replacing them with a simpler rule requiring retailers to keep E0 or E10 gasoline available in at least one clearly labeled dispenser.

Another recommendation focuses on fuel infrastructure compatibility. The association suggested establishing a presumption that equipment installed after 2005—including fuel dispensers, underground storage tanks, piping systems, hoses, and nozzles—is suitable for E15 use.

According to Cooper, removing regulatory barriers could quickly unlock billions of gallons of additional ethanol in the U.S. fuel supply.

He noted that increasing ethanol use would not only help reduce fuel costs but also support farmers whose crops help produce renewable fuel.

"The most effective way to prevent additional increases in gas prices across the U.S. is by expanding and diversifying the domestic fuel supply, including ethanol made from our nation's farm fields," said Cooper.

"Knocking down regulatory barriers and allowing E15 to be stored and distributed in existing infrastructure throughout the summer will lower fuel costs for Americans and strengthen the market's resilience against global supply disruptions," said Cooper.

Photo Credit: shutterstock-dickgage


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