April 21, 2008

Missouri Motorists Save With Ethanol

Economics study shows that Missouri drivers save money with ethanol belnded gasoline.The Missouri Corn Merchandising Council commissioned John Urbanchuk of LECG to study the effects the ethanol mandate that went into effect on January 1, 2008 was having on gasoline prices in the state. The study found that the 10% ethanol blend was saving Missouri motorists 9.8 cents per gallon based on the wholesale price difference between ethanol and gasoline.

Based on last years fuel usage and the 9.8 cents per gallon savings that translates into about $285 million dollars that will be saved this year.

Source : Missouri Corn Online


Anonymous said...

I would say most people in Missouri have no idea, and MUST be educated, that the fuel they are buying is now 10% ethanol, and that it is less efficient than normal fuel. I just got back from an out of state trip, and compared my mileage on the way out of Missouri, where I was burning E10 bought in MO, and then the mileage on the way home, where I was burning "straight" gas.

I got 2.8 MPG better coming home burning the "straight" gas!!! I knew there was a difference, but that is unbelievable!

The people I have talked to so far, have no idea the govt requires E10 and that it has been changed, right under their noses. They also have NO IDEA it is less efficient.

If E10 or E85 was made from something other than corn, and was in any way energy efficient to make or consume, it could make sense to keep using. But as it stands, the corn growers and the government are benefitting here. (as you burn more physical gals, the govt makes more in taxes)

Michael A. Gregory said...

Is there any particular reason that you think the people of Missouri are uneducated? I live in Tennessee and know that the gasoline in Missouri is E10.

And congrats on the 2.8 miles per gallon improvement. I have had variances greater than that between tanks of straight gasoline before, does that mean that gasoline is less efficient than gasoline?

NO IDEA that ethanol is less efficient? 3.4% less energy content. The formal studies that I have seen range from 1.5% to 3.5% lower fuel mileage. Even the American Petroleum Institute makes no greater claims for mileage losses.

You are correct that corn farmers and the government benefit from ethanol. Any domestic product that provides jobs and keeps money in our economy instead of sending it to foreign oil producers will benefit the government and every American.

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