Based upon current market conditions and federal renewable fuels policy, 10% ethanol blends (E10) are keeping gasoline prices $0.12/gal. cheaper than they otherwise would be.

As AAA reports, the current average price for gasoline is $3.88/gal. nationwide. Without ethanol, gas prices would average $4/gal. nationally.

These savings do not take into account the downward pressure ethanol puts on the oil market by virtue of being 10% of the nation’s gasoline supply. Previous estimates of that impact show ethanol is keeping gasoline prices up to $0.60 lower/gal. than they otherwise would be.

Renewable Fuels Association Vice President of Research and Analysis Geoff Cooper has taken a snapshot look at ethanol and gasoline prices as they closed recently.

To read the report, link here.