Missouri Motorists Save With Ethanol
Posted: April 22, 2008
The Missouri Corn Merchandising Council held a press conference at the state capitol on Monday to announce the results of a new study showing that Missouri motorists are saving money at the pump thanks to ethanol.
The “Impact of Ethanol on Retail Gasoline Prices in Missouri,” study, performed by John Urbanchuk, found that drivers in Missouri are expected to save an average of 9.8 cents per gallon due to the 10 percent ethanol standard that went into effect Jan. 1, 2008.
According to the Energy Information Administration (EIA), Missouri drivers used over 2.9 billion gallons of gasoline in 2007. With nearly a dime a gallon difference, using ethanol-blended fuels translates to statewide savings of more than $285 million dollars in 2008.
(Read more from MO Corn here)
Missouri Corn board member Terry Hilgedick says the study confirmed what they had already believed. “It pointed out that ethanol is a bargain for consumers, they are saving about 9.8 cents per gallon at the pump due to just the Missouri law.”
Hilgedick notes that the study does not factor in the increasing use of biofuels like ethanol that are helping to extend gasoline supplies and hold retail pump prices down. According to Merrill Lynch commodity strategist Francisco Blanch, U.S. gas prices would be 15 percent higher without the increasing effect of biofuels. Without ethanol, the price at the pump would be $3.70 a gallon instead of the recent average price of $3.25 a gallon.
Listen to an interview with Terry here: