Ethanol held down price of gas by $1.37 per gallon, says study
Ethanol held down the price of gasoline sold in the Midwest by $1.37 per gallon in 2010 according to a study from the Center for Agricultural and Rural Development.
"The price at the pump is painful, but ethanol lessens the pain and price for a gallon of gasoline. Ethanol, a clean renewable fuel, enters the fuel supply and offsets the demand for fossil fuel gasoline," according to Brian Kletscher, Chair of the Minnesota Bio-Fuels Association. Citing a report from the Center for Agricultural and Rural Development, Kletscher explains "the increase in ethanol production reduced wholesale gasoline prices and that translates into a larger reduction at the pump, about $0.89 nationwide and $1.37 per gallon in the Midwest in 2010."
Tim Rudnicki, executive director of the Minnesota Bio-Fuels Association said "Minnesotans spent about $7 billion for gasoline motor fuel in 2010, and 90% of that, or $6.3 billion, is money sent out of state to buy gasoline motor fuel. Contrast this with ethanol made right here in Minnesota. Every gallon of ethanol replaces a gallon of petroleum. That means jobs for Minnesotans, more energy dollars stay in the state, farmers have a chance to earn a decent living and we make ourselves more energy independent. We have a win-win for our workforce, our agricultural community, the environment, and motorists."
The Minnesota Bio-Fuels Association represents the renewable fuels industry within the State of Minnesota. MBA explores ways to decrease dependence on petroleum while being mindful of the environment, energy security and the benefits of local economic development.