Ethanol Is Turning Down the Heat on Labor Day Gasoline Prices

Gasoline prices have risen to $3.87 per gallon, the highest in nearly a year, due to increased summer temperatures. However, the presence of ethanol, particularly in blends like E10 (10% ethanol) and E15 (15% ethanol), has helped to keep gasoline prices in check. In June and July, E10 was $0.40 per gallon cheaper at wholesale than regular unleaded gasoline, potentially leading to $14 billion in savings for Americans during the summer, or around $108 per household. E15, which is approved for most vehicles on the road, saw even greater savings, with a discount of $0.48 per gallon at wholesale compared to regular unleaded gasoline. These savings are likely to be greater, as some sources suggest a $0.22 per gallon difference in retail prices between E15 and E10. Additionally, studies indicate that ethanol blending can also lower global crude oil prices and further reduce retail gasoline prices. Overall, ethanol is helping to mitigate the impact of rising gasoline prices during the summer travel season.

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