Ethanol curbs soaring US gasoline prices – trade group

15 May 2012 16:51  [Source: ICIS news]

HOUSTON (ICIS)--Growing use of domestically-produced ethanol reduced US wholesale gasoline prices by an average of $1.09/gal in 2011, a US ethanol industry trade group said on Tuesday.

The Renewable Fuels Association (RFA) said without ethanol, US gasoline prices would be even higher than they are currently.

The group pointed to a study about ethanol and its effect on gasoline prices by economists from the University of Wisconsin and Iowa State University.

“While it’s hard to imagine that gas prices could be even higher than they are now, this study clearly underscores that the current pain at the pump would be far worse without ethanol,” said RFA CEO Bob Dinneen.

“Because ethanol makes up 10% of our gasoline pool today, it significantly reduces demand for oil and puts downward pressure on gasoline prices,” Dinneen added.

Check out Doris de Guzman’s Green Chemicals Blog for views on sustainability issues

By: Stefan Baumgarten
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