Study: Ethanol Cuts Gas Price by 77 Cents per Gallon


Adding low-cost ethanol to the nation’s gasoline supply improves energy security and saves the average American household more than $750 annually. That’s according to a new study by energy economists from the University of California-Berkeley.

The analysis concluded that “adding ethanol to gasoline decreases the price paid by U.S. drivers at the pump.” The researchers estimate the average discount per gallon to be $0.77 between 2019 and 2022, reaching a total savings of $95.1 billion annually for U.S. consumers. The authors of the study attribute much of this benefit to the Renewable Fuel Standard.

Renewable Fuels Association President and CEO Geoff Cooper said the study’s results come at a critical time for U.S. policymakers. Cooper says, “American consumers would be paying much higher prices at the pump if not for the inclusion of more than 14 billion gallons of low-cost, low-carbon ethanol in our nation’s gasoline supply each year.”

RFA commissioned the new study.