Reduction in Ethanol Mandate Could Further Reduce Gasoline Prices for American Drivers

Reduction in Ethanol Mandate Could Further Reduce Gasoline Prices for American Drivers

December 9, 2021

More good news for American drivers this week. The Wall Street Journal reports on why gasoline prices may continue to decrease:

The Environmental Protection Agency on Tuesday proposed reducing the amount of ethanol and other biofuels that must be blended into gasoline this year and retroactively lowered last year’s mandate, in a win for refiners who warned that raising the requirement would lift prices at the pump.

The decision comes as the price of ethanol, the most-dominant biofuel, has risen to its highest level in a decade. While U.S. gas prices are driven by the price of crude oil, refiners say ethanol prices have contributed to higher prices at the pump, though gasoline has dipped from recent highs.

Just last month, PTF spotlighted the challenges that high gas prices pose for millions of American families. In that post, we discussed one such family in rural America:

Rachel Gould spends $50 on gas taking her two special-needs children on the three-hour trip from her home in Central Illinois to a hospital in St. Louis. That is roughly a 60% increase from the same time last year. 

“You have to have gas and have to pay for it either way you look at it,” said Mrs. Gould, who drives a Dodge Caravan that gets 23 miles to the gallon. 

Americans, particularly in rural areas, have little control over how far they have to travel for certain needs and almost no options besides their automobiles. For these Americans, gasoline is a necessity no matter the price. So, it is refreshing news that drivers like Mrs. Gould will soon see more affordable gas prices in time for Christmas.

This welcome news is also a reminder of how the American energy industry is able to serve the energy needs of Americans in a reliable and affordable fashion, particularly when government mandates don’t get in the way.