Thursday, May 04, 2006

Cost of Ethanol in Fuel-correction

If I read the EIA correctly, gasoline cost, pretax, is about 2.43 per gallon. Ethanol is 2.70 per gallon. At 10% ethanol, the extra cost of ethanol is about $0.03/gallon. The cost of the ethanol in the gas is $0.27 less the comparable cost of gasoline. Not as big a difference as I've read. However, should the price of gasoline decrease, then the cost/gallon of ethanol increases. Next time double check the sources.

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