AFPM Highlights Critical Flaws In New Ethanol Study
WASHINGTON, May 15, 2012 /PRNewswire-USNewswire/ — American Fuel & Petrochemical Manufacturers President Charles T. Drevna released the following statement responding to a study issued today by the Center for Agricultural and Rural Development that claims ethanol reduced wholesale gasoline prices by an average of $1.09 a gallon in 2011.
“This is a flawed study based on false assumptions that distorts statistics to reach the predetermined and erroneous conclusion that adding more ethanol to gasoline saves consumers at the pump. Today’s study is just an update of an equally flawed 2009 study that even the authors conceded is not a reflection of reality. In their original 2009 report, the authors of the study wrote: ‘…it would be wrong to extrapolate the results to today’s markets.’
“Increased amounts of ethanol in gasoline will likely lead to consumers paying even more at the pump. According to the AAA daily fuel gauge report, fuel that is 85 percent ethanol, E85, significantly decreases fuel economy and is more expensive than gasoline on a miles-per-gallon basis due to its lower energy content, even at today’s prices. The AAA report notes that if consumers were to use E85 today, they would be paying nearly 60 cents per gallon more than if they filled up with regular gasoline.
“The best products always come out on top when consumers are allowed to make purchasing choices in the free market. If ethanol and other biofuels are such superior products, producers should join petroleum refiners in calling for an end to the Renewable Fuel Standard. The American people will benefit most from fair and open competition on a level playing field.”
AFPM, the American Fuel & Petrochemical Manufacturers (formerly known as NPRA, the National Petrochemical & Refiners Association) is a trade association representing high-tech American manufacturers of virtually the entire U.S. supply of gasoline, diesel, jet fuel, other fuels and home heating oil, as well as the petrochemicals used as building blocks for thousands of vital products in daily life. AFPM members make modern life possible and keep America moving and growing as they meet the needs of our nation and local communities, strengthen economic and national security, and support 2 million American jobs.
SOURCE American Fuel & Petrochemical Manufacturers