WASHINGTON, D.C. — Sadly, drivers are expected to see skyrocketing gas prices this Independence Day as analysts at GasBuddy predict that Fourth of July prices will reach their highest level in six years. Tom Kloza, GasBuddy’s chief oil analyst, remarked, “Fear about what could happen if Iraqi exports fall prey to violence has altered the calculus for summer oil prices.”
“Ethanol is the lowest transportation fuel in the world. It saves Americans money at the pump and stretches the fuel supply. It is the perfect remedy for skyrocketing gas prices. Now is not the time for the Environmental Protection Agency to be scaling back our nation’s renewable energy policy. Now is the time to be expanding the use of biofuels and striking a blow for American energy independence,” noted Bob Dinneen, president and CEO of the Renewable Fuels Association (RFA).
The Renewable Fuel Standard (RFS) was established to reduce America’s dependence on foreign oil. America’s petroleum import dependence reached a high of 60 percent in 2005. That number has fallen to 35 percent in 2013, compared to the 41 percent without the 13.3 billion gallons of ethanol in America’s fuel supply. In 2013, ethanol production displaced the amount of oil America imports from Iraq and Venezuela — 462 million barrels of crude oil.
Ethanol is currently blended in more than 96 percent of America’s fuel supply, saving consumers money because wholesale ethanol is cheaper than wholesale gasoline by an average of $1.00/gallon. On a consumer level, energy economist Philip Verleger found that ethanol saved American consumers on average $1.00/gallon in 2012 and 2013. This translates to an average family savings of $1,200/year in fuel costs.
“Many Americans are keeping a close eye on the news as political instability continues in Iraq and gas prices continue to tick up here at home. The need for American energy independence has never been so important and the solution has never been so clear — renewable fuels,” Dinneen explained.