The Hancock-Henderson Quill, Inc.
Here we go again.
Gas prices are surging. In some cases the price of regular gasoline jumped more than 70 cents per gallon in less than eight hours.
Many are fretting over high gas prices, but few realize that ethanol prices are at record lows.
In other words, if more choices were offered at the pump (i.e., gas with higher volumes of ethanol), motorists wouldn't be getting price gouged.
Ethanol is priced consistently 32 cents per gallon below that of reformulated gasoline. In fact, by the time E 85 (85 % ethanol, 15% gasoline) is offered at the pump, the price would be roughly $2.00 per gallon.
The ethanol industry in Illinois produces more than 30% of our gasoline demand in Illinois.
This abundance of ethanol production provides a valuable buffer for Illinois motorists against supply disruptions and price spikes, which we are seeing right now due to a refinery shutdown.(
The simple fact is that nearly all gas stations in Illinois could provide fuel with higher volumes of ethanol that have been approved by the federal government for vehicles 2001 and newer.
Why they are not is a question for the oil industry.
That's something to think about over the next few weeks of paying more at the pump.
Raymond Defenbaugh, President Illinois Renewable Fuels Association