It’s not cheap. The average price for gas across Wisconsin, according to the American Automobile Association (AAA), is currently $3.75 to $3.81 for a gallon of regular, while mid-grade is $4.40, and premium is $4.98 per gallon. The one you may be keeping an eye on is the cost for diesel, which sits at $5.65.
The numbers are reviewed by economists with the Renewable Fuels Association (RFA), who believe the higher ethanol use in gas is helping reduce fuel costs for some, while also supporting biofuels and agriculture industries.
Ethanol offers savings at the pump
Ethanol is selling for at least $1 per gallon less than gas blendstock at the wholesale level. It’s creating an incentive for greater blending. Renewable Fuel Standard credits also add economic value to ethanol use.
RFA’s Chief Economist Scott Richman says stronger ethanol demand could help keep gasoline prices lower while increasing demand for corn and other feed grains.
“Ethanol’s blending economics haw been compelling this summer. Consumers and fuel suppliers have clearly responded,” Richman says. “The response would be even greater if legislation permanently allowing year-round sales of E15 had already been enacted. The additional volume would have helped hold down prices at the pump even more, at a time when U.S. fuel supplies have tightened and oil refineries have been running near full capacity.”
Congress is still considering legislation that would allow year-round E15 sales nationwide.
Supporters say expanding E15 availability could benefit drivers through lower fuel costs, farmers through increased demand for crops, and refiners through greater flexibility in meeting federal fuel requirements.
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