Ethanol, not SPR, quickest way to reduce gas prices, according to some

Ethanol, not SPR, quickest way to reduce gas prices, according to some
Fueling station in Agoura Hills. Courtesy Photo Nebraska Corn Board
November 28th, 2021 | NAFB release

The ethanol industry claims the Biden administration could secure lower gas prices almost immediately if it allowed higher blends of corn ethanol, year-round, into the nation’s fuel supply.

All eyes are on President Biden’s decision to release 50 million barrels of oil, a three-day U.S. supply, from the Strategic Petroleum Reserve. But Renewable Fuels Association chief Geoff Cooper said there’s a faster, more efficient way to cut gas prices.

“If you allow more ethanol into the blend, it’s going to reduce the price, it’s going to extend our supply of domestic fuel, and that’s going to help put downward pressure on pump prices,” he said.

Ethanol has been about 40 cents a gallon cheaper than gasoline over the last ten years, according to the Renewable Fuels Association. While the oil industry’s stepped up its fight against the Renewable Fuel Standard cutting into oil profits. President Biden has asked the Federal Trade Commission to probe gas prices.

“This administration should be relying on its ‘Strategic Biofuels Reserve’ that we have in this country, rather than tapping into the SPR,” Cooper said. Something which could be done quickly.

Cooper argued no EPA annual volume-setting, now delayed again, is needed, though year-round E15 use was struck down by the courts and is now on appeal to the U.S. Supreme Court.

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