Media & News

By Scott Richman, RFA Chief Economist

The classic song “Home for the Holidays” captures the joy of being with family at this time of year, but it does contain the lament that “from Atlantic to Pacific…the traffic is terrific.” That has never been more true than this year, given that “AAA projects a record 71.7 million people will travel by car over Thanksgiving.”[1] Even so, there’s good news as Americans hit the road: Ethanol is making holiday travel more affordable.

An analysis by the Renewable Fuels Association indicates that the use of ethanol in the nation’s gasoline is expected to save travelers $217 million over Thanksgiving.[2] E10, a 10% ethanol blend, is the predominant form of gasoline sold in the U.S., and the most recent monthly data shows that it costs $0.28 per gallon less at wholesale than gasoline that does not contain ethanol.[3]

The discount averaged $0.31 per gallon November 2023 to October 2024. For the 12-month period, that translates to a $42 billion reduction in Americans’ fuel bills, equivalent to $319 per household.

The savings are even greater for E15, a 15% ethanol blend that is approved for more than 95% of the cars and trucks on the road today. According to E15prices.com, the national average retail price of E15 has been $0.26 per gallon less than E10 over the last 12 months. If E15 had been adopted nationwide, it would have reduced household spending on gasoline by an additional $30 billion.

At a time when the prices of many basic necessities remain elevated, the U.S. ethanol industry is proud to help hold down the cost of gasoline as families travel to be together for Thanksgiving.

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[1] https://newsroom.aaa.com/2024/11/nearly-80-million-americans-expected-to-travel-over-thanksgiving/

[2] Assumes 71.7 travelers by automobile (AAA); 1.99 occupants per car; 489 miles per holiday trip (U.S. DOT/BTS and The Auto Wire); and average fuel economy of 22.8 miles per gallon (EPA).

[3] RFA analysis of Nebraska Energy Office rack price data for Omaha. https://neo.ne.gov/programs/stats/inf/66.html