E85 motor fuel is increasingly price-competitive with gasoline in parts of the Midwest

The retail price of E85 motor fuel, which is gasoline blended with up to 85% ethanol, has fallen in recent months. While ethanol has been cheaper than regular gasoline on a per-gallon basis for several years, ethanols lower energy content often meant that consumers paid more per mile when using higher ethanol blends such as E85. However, recent declines in E85 prices at stations offering that fuel in several Midwestern states have brought E85 close to price parity with regular gasoline on an energy content basis.Price parity on an energy content basis means that drivers with one of the more than 8 million flex fuel vehicles FFVs in the country approximately 3% of vehicles capable of running on fuels with higher ethanol content can achieve the same mileage per dollar with E85 as with E10 gasoline with up to 10% blended ethanol, the main blend used in vehicles now.The lowest E85 pump prices have generally been in the Midwest, where most U.S. ethanol is produced and which, consequently, has relatively low wholesale ethanol prices. Nationwide, approximately 2,350 service stations—or 2% of all retail stations—offer E85 motor fuel, with the overwhelming majority located in the Midwest.

via E85 motor fuel is increasingly price-competitive with gasoline in parts of the Midwest – Today in Energy – U.S. Energy Information Administration EIA.

Categories: Energy, Transportation

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