Tuesday, March 25, 2008
Saving at the Pump
A great report out of Nebraska underscores my point from yesterday's post -- that ethanol is helping control prices at the gas pump. I think it is fantastic to watch the national average gasoline price of regular unleaded climb to $3.26 per gallon in the past week while a quick survey of gas stations here in central Iowa shows a price of around $3.05 per gallon -- a small decrease from last week!
And now, out of Nebraska, the conclusions are clear. With an average savings of 9 cents per gallon using E10 blends of gasoline compared to regular gasoline, the state of Nebraska saves consumers $4 million per month on ethanol! This is calculated by taking the gasoline usage in Nebraska, multiplying into the percentage that using ethanol (77%) and then multiplying that number by the average savings. Amazingly, most gas stations in Iowa offer between 10 to 13 cents per gallon savings on E10 blends and so the savings to the consumer could be even greater than $4 million per month. With E10 blends averaging 10 cents per gallon savings, it should definitely be the fuel of choice, even considering the 2.7% energy density deficit that it carries. All I can say is that although it sucks, filling up on E10 when it is priced at $2.99 sure doesn't feel that bad with other states paying a lot more for their gas.