Contact: Joshua Morby 414.791.9120
MILWAUKEE – A report by the University of Wisconsin and Iowa State University found that ethanol production helped reduce gas prices at the pump by an average of $0.89 per gallon across the country in 2010.
The report, which updated the findings of a study originally released in 2009 by the same authors, also found that if ethanol production came to an immediate halt, gas prices nationwide would increase anywhere from 41 to 92 percent.
“Every summer, as gas prices increase to $4 per gallon and beyond, the ethanol industry plays a huge role in easing the pain for consumers at the pump,” said Joshua Morby, Executive Director of the Wisconsin Bio Industry Alliance. “This study confirms that especially in the Midwest, consumers would see historically high gas prices if cheaper, home-grown ethanol were not blended into traditional gasoline.”
The reduction in gas prices varied based on geography. On the East Coast, ethanol helped reduce gas prices by $0.58 per gallon in 2010, but in the Midwest, where ethanol production is more plentiful and less expensive, the fuel help reduced prices at the pump by $1.37 per gallon on average.
Over the past decade, when data from the original study and the updated study are taken into account, ethanol has reduced gas prices by $0.25 per gallon on average across the country, including $0.39 per gallon in the Midwest.
“Expanding ethanol production and consumption is not only a great way to keep energy dollars in our state and grow our economy, but reduce prices at the pump for consumers as well,” Morby said. “By increasing access E15 – which recently received EPA approval for use in 2001 model year vehicles and newer – we can further take advantage of the economic benefits that ethanol has to offer.”
A copy of the study is available at http://tinyurl.com/gaspricesstudy.
The Wisconsin Bio Industry Alliance is a diverse group of businesses, environmental groups and statewide and local organizations that have come together to build both public and legislative awareness of the Bio Industry in Wisconsin.
For more information about the Alliance, or to find out how to join, please visit our website: http://www.wisconsinbioindustry.com.