AFPM debunks study on ethanol blending benefits to consumers

16 May 2012 04:44  [Source: ICIS news]

HOUSTON (ICIS)--The American Fuel and Petrochemical Manufacturers (AFPM) said on Tuesday that consumers have to pay higher for increased amounts of ethanol in gasoline, debunking a recent study claiming that ethanol blending has reduced wholesale gasoline prices.

The Center for Agriculture and Rural Development, in the study, stated that ethanol has reduced fuel prices by an average of $1.09/gal in 2011. The centre is part of the College of Agriculture and Life Sciences at Iowa State University.

Ethanol is blended into US gasoline at a rate of up to 10%.

"This is a flawed study based on false assumptions that distorts statistics to reach the predetermined and erroneous conclusion that adding more ethanol to gasoline saves consumers at the pump," according to a statement by Charles Drevna, AFPM president.

"Increased amounts of ethanol in gasoline will likely lead to consumers paying even more at the pump," Drevna said.

Drevna cited a report by the US motorist group AAA stating that a fuel blend of 85% ethanol (E85) is more expensive than regular gasoline on a mile-per-gallon basis, even at current prices.

Citing the AAA report, Drevna said that motorists would pay nearly 60 cents/gal more for E85 versus regular gasoline.
"The best products always come out on top when consumers are allowed to make purchasing choices in the free market," Drevna said. 

"If ethanol and other biofuels are such superior products, producers should join petroleum refiners in calling for an end to the Renewable Fuel Standard," he said.

The Renewable Fuel Standard mandates that ethanol is blended into the US fuel pool.

"The American people will benefit most from fair and open competition on a level playing field," Drevna said.

By: Al Greenwood
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