In response to this week’s announcement by the White House calling on OPEC+ member countries to increase oil output, the Renewable Fuels Association today sent a letter to President Biden supporting the Administration’s call for an investigation into the true causes of recent higher gas prices. The letter also underscored that the solution to higher pump prices is not more oil from OPEC+, but rather increased production and use of home-grown fuels such as ethanol.
“Rather than hoping Iraq, Iran, Venezuela and other OPEC+ countries will provide the cure to escalating gas prices in the United States, we urge your administration to pursue a real and immediate solution to higher pump prices—increased production and use of low-carbon renewable fuels like ethanol,” said RFA President and CEO Geoff Cooper. “Using more domestically produced ethanol would not only result in lower fuel prices for consumers, but it would also support your goals related to clean energy, climate change, and jobs.”
In 2019, a study found that the increased use of ethanol through the Renewable Fuel Standard both saves drivers money at the gas pump and enhances energy security by softening the blow to our nation’s drivers when global oil production is disrupted. In the analysis, researchers concluded that expanded use of ethanol under the RFS has lowered gasoline prices by an average of 22 cents per gallon in recent years, saving a typical American household $250 annually.
In the letter, RFA encouraged the Biden Administration to expeditiously finalize robust Renewable Volume Obligations (RVOs) for 2021 and 2022, take action to ensure consumers have year-round access to E15, and work with Congress to ensure upcoming legislation includes incentives to increase FFV production and expanded infrastructure for higher ethanol blends like E15 and E85.
“Mr. President, the key to cleaner and more affordable energy for American consumers lies not in the oil fields of Saudi Arabia and Russia, but in the farm fields of our nation’s heartland,” said Cooper. “U.S. ethanol producers and farmers stand ready to work with your administration to deliver immediate and effective solutions to the challenges posed by high pump prices and over-reliance on petroleum.”