Renewable Fuel Standard Helps Keep Summer Fuel Prices Low

Source: By CSD Staff • Posted: Wednesday, July 6, 2016

High-octane ethanol gasoline blends are helping American’s to enjoy low fuel prices this summer.

The Renewable Fuel Standard (RFS) is proving to be beneficial to Americans in more ways than just providing a cleaner fuel supply.

Gas prices in many parts of the country during Independence Day weekend will be the lowest since 2005, and those savings are encouraging for the estimated 43 million Americans who plan to travel during the holiday.  One factor leading to lower pump prices is the RFS which provides consumers with an abundant supply of low-cost, high-octane ethanol which is blended with gasoline. This helps prove the benefits of ethanol extend far beyond rural America and in fact improves people’s lives nationwide.

“With economic anxiety gripping many parts of the world, American families traveling to celebrate our nation’s independence this weekend are saving between $700 and $1000 on gasoline this year compared to prior years. The RFS is one reason for this relief at the pump because it ensures a domestic supply of low cost ethanol which also cuts greenhouse gas emissions because it is a low carbon, high-octane performance fuel,” said American Coalition for Ethanol (ACE) executive vice president Brian Jennings. “Since ethanol production also results in an abundance of nutritious and high-protein livestock feed, the RFS helps fuel and feed the nation.”

The Oil Price Information Service (OPIS) is reporting that for the first half of the year, gas prices nationwide averaged $2.04 per gallon, which is inspiring motorists to take that car trip they may not have been able to afford in years past. It’s the second straight year that July gas price averages are under three dollars a gallon. Combine that with the recent International Food Policy Research Institute report showing that there isn’t a link between ethanol and rising food costs, these factors show that the RFS is working as intended despite what the critics want you to believe.