Gas Prices Unnecessarily High, According to Illinois Corn Marketing Board
BLOOMINGTON, Ill., May 1, 2012 /PRNewswire/ — Americans are overpaying at the pump every time they’re forced to choose the standard gasoline blend.
According to the Oil Price Information Service, based on wholesale prices ethanol was $1.20 cheaper per gallon than gasoline last week. That price spread is significant and is expected to remain quite favorable to ethanol, according to Dave Loos, Technology and Business Development Director for the Illinois Corn Growers Association (ICGA).
“Too bad the favorable price isn’t reflected in the price at the pump,” Loos said.
Ethanol no longer receives government subsidies. At an E-10 blend ethanol should be saving consumers about $0.10 per gallon if the gasoline retailers are passing along the savings. If consumers were allowed to choose a higher blend level, for example, E-15, they could save another nickel or more per gallon at the pump.
“It would be in the best interest of all Americans if consumers were allowed access to cheaper gas. More ethanol in the gasoline means less imported oil and reduced subsidies to the oil companies. That means the average American’s tax bill could be reduced while saving money at the pump,” Loos continued.
“What Americans really need to see happen is the oil companies and petroleum marketers cooperating to bring down the price of gasoline through the increased use of ethanol,” Loos said.
The U.S. Environmental Protection Agency has finally approved the use of E-15 for all vehicles 2001 and newer. Oil companies and petroleum marketers can now offer a new blend of ethanol and gasoline that would result in cheaper prices at the pump.
ICGA is working in Springfield, Ill., and in Washington, DC, to bring consumer choice and lower gas prices to every gas pump.
CONTACT: Dave Loos (309) 830-2319
SOURCE Illinois Corn Marketing Board