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Ethanol offers pump relief amid price surge

New federal data shows E15 fuel saving drivers 11.5% per gallon as gasoline costs jump 42% in three months.

E 10 At The Pump Pixabay Markusspiske

E15 ethanol fuel sold for $0.47 per gallon less than standard E10 gasoline in April 2022, offering drivers an 11.5% discount that persisted even when adjusted for energy content, according to a Department of Energy report that credited expanded ethanol consumption through the Renewable Fuel Standard.

  • E15 ethanol averaged $3.62 per gallon compared to $4.09 for E10, representing an 11.5% price discount
  • When adjusted for energy content, E15 still cost 8% less per mile traveled than E10 gasoline
  • Gasoline prices jumped $1.20 per gallon (42%) between January and April due to global oil supply disruptions
  • E15 prices were lower than gasoline in all regions except the Gulf Coast and Midwest, where prices matched or were slightly higher
  • Alternative fuels like compressed natural gas and propane also offered significant savings, with CNG costing $1.01 less per gasoline gallon equivalent

American drivers with access to ethanol blends found relief from soaring gasoline prices in April, with E15 fuel selling for $0.47 per gallon less than standard E10 gasoline, according to a new Department of Energy report released in July.

The quarterly Alternative Fuel Price Report, which marked the first time DOE included E15 pricing data, showed the higher ethanol blend averaged $3.62 per gallon compared to $4.09 for regular E10 gasoline, an 11.5% discount. When adjusted for energy content, E15 still cost 8% less than E10, meaning drivers choosing the ethanol blend pay less per mile traveled.

The savings came as gasoline prices jumped $1.20 per gallon, or 42%, between January and April due to global oil supply disruptions in the Strait of Hormuz. Diesel prices climbed even more sharply during that period, rising $1.98 per gallon to reach a national average of $5.55.

The Renewable Fuels Association said the report proves that expanded ethanol consumption, driven by the Renewable Fuel Standard and its RIN market mechanism, leads to lower prices at the pump for American consumers.

“While a handful of stubborn oil refining companies continue to suggest that the RFS somehow leads to higher prices at the pump, this new data from DOE proves that the exact opposite is true,” said RFA President and CEO Geoff Cooper. “After the Trump administration finalized the highest-ever RFS volumes back in March, the marketplace responded by expanding the supply of lower-cost E15.”

Cooper warned that granting small refinery exemptions, as is reportedly being considered, would reverse this progress. “Undermining the RFS with small refinery exemptions would reverse this progress and lead to higher prices at the pump,” he said. “Granting massive SREs would do nothing at all to lower pump prices and, in fact, would have the opposite effect.”

E15 prices came in lower than gasoline in all reporting regions except the Gulf Coast, where prices matched, and the Midwest, where E15 cost $0.07 more per gallon.

E85 ethanol, which typically contains about 70% ethanol, averaged $3.31 per gallon, $0.79 less than gasoline on a per-gallon basis. However, when adjusted for energy content, E85 actually cost $0.21 more than gasoline per gasoline gallon equivalent because of its lower energy density.

The April report compiled 5,302 price submissions from Clean Cities and Communities coalition directors across the country. The data represents both public stations and private fleet refueling facilities across seven regions.

Other alternative fuels also offered savings compared to conventional options. Compressed natural gas averaged $3.08 per gasoline gallon equivalent, making it $1.01 cheaper than gasoline. Propane prices averaged $3.59 per gallon, or $0.50 less than gasoline.

The West Coast saw the highest conventional fuel prices, with gasoline averaging $5.69 per gallon and diesel reaching $7.16 per gallon in April.

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