Consumers Save $142 A Year On Coasts, $241 In Midwest, As Ethanol Production Extends U.S. Fuel Supply and Holds Down Gas Prices
OMAHA, NE (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 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 copy of the Iowa State University report, click here..
