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Ethanol Prices Reported Lower than Gasoline

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MAY 31st, 2005
 

The Kansas City Star reports that the price of blended e85, which consists of 85 percent ethanol and 15 percent unleaded gasoline, could be purchased in the Midwest for $1.69 a gallon, significantly below the $2 plus price tag throughout the rest of the United States. Although the price is right, e85 is not available at most gas stations and only certain types of vehicles can use it.
 
Because ethanol is made from corn, soy and other agricultural products, the fuel has gained popularity with politicians and farmers in the Midwest. For example, Governor Dave Heineman, R-Neb., recently signed an executive order that that directs all state employees, who drive state flexible-fuel or diesel powered vehicles, to use E-85 ethanol and biodiesel fuel whenever reasonable possible. Because of the economic benefits to the Midwest, it may be safe to predict that more e85 fuel pumps will be seen at Midwest gas stations in the future.

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