As Turmoil in Iraq Pushes Iowa Gas Prices Up, American Ethanol Brings Relief to Consumers
As the situation in Iraq comes home to motorists paying higher prices at the pump, the Fuels America coalition is urging greater reliance on less expensive, homegrown fuels as opposed to reliance on the volatile market for foreign oil. In fact, an analysis of state data covering the past year from E85prices.com shows that drivers with "Flex Fuel" vehicles in Iowa can pay an average of $0.68 less per gallon by filling up with E85, which contains up to 85 percent American ethanol.
Ethanol is a higher octane fuel that improves engine performance. That's why it has been added to gasoline for decades and is now being blended at higher levels into the fuels used throughout professional auto racing. Prices for American-grown renewable fuels like ethanol and advanced biofuels have grown increasingly competitive thanks to America's Renewable Fuel Standard (RFS), which ensures that homegrown renewable fuels are available as an option to American consumers.
The analysis of data from "E85 Prices" also revealed that drivers have saved as much as $0.87 per gallon at the pump over the past year by filling up on E85. And because ethanol increases the available fuel supply, it helps to drive down the price of gasoline for all drivers regardless of whether they choose a higher blend fuel like E15 or E85.
In addition to saving American drivers money, the RFS has helped to support 852,000 jobs and $184.5 billion in economic output in the U.S. The renewable fuels industry supports 73,371 jobs and $5 billion in wages in Iowa alone, as well as $19.3 billion in economic output.
Meanwhile, violence in Iraq is driving high gas prices even higher than predicted. Mere worries about oil supply issues have already helped drive world and U.S. prices to their highest levels since September. Americans could see prices for regular gasoline jump more than $0.20 per gallon over the next couple weeks as violence in Iraq continues.
Fuels America's announcement coincides with a paid advertising campaign to highlight the consumer savings the RFS and the renewable fuels industry deliver for Americans. This week, the coalition is running digital ads that ask Americans why we should "let Big Oil pump us dry," and call on our leaders to "invest in affordable, homegrown renewable fuels" by protecting America's Renewable Fuel Standard.
Contact: Aaron Wells, aar
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