A new study says consumers are saving money at the gas pump because of ethanol.
An analysis released by the Renewable Fuels Association says ethanol is helping to offset higher fuel prices, and ten percent ethanol blends alone could save consumers at least $39 billion this year.
The study of wholesale gasoline and ethanol price data shows that blending E10 has reduced wholesale gasoline prices by at least 27 cents per gallon, or 14 percent, compared to ethanol-free gasoline. The data comes as the Energy Information Administration is already warning drivers that they are likely to see the highest gasoline prices in four years this summer.
The study says that at current prices, E10 would save consumers $306 per household, this year. If the U.S. would implement year-round E15 sales, the Renewable Fuels Association says the savings would be at least 34 cents per gallon, or 17 percent, for E15 consumers.