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Ethanol Increases Consumers' Fuel BillsIt's Cleaner but More Expensive |
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By Joe Benton February 21, 2006
The U.S. Department of Energy says a vehicle has to use 1.4 times as much E85 as gasoline to go the same distance. E85 is made up of 85 percent ethanol made from grain and 15 percent conventional pump gasoline. Throughout the country the price of E85 is higher than gasoline even though the corn-based fuel contains only 72% of the energy in a gallon of gasoline. So while the heavily promoted alcohol fuel may reduce U.S. demand for oil and pour billions of dollars into U.S. agriculture, it seems E85 will increase motorists' fuel bills significantly as well. This week E85 is selling for $2.19 a gallon while gasoline with 10% ethanol is $2.06. As a result, many Midwestern drivers are passing up E85 even though the corn based fuel is better for the environment and their local economy. The Bush Administration has invested heavily in E85 from a political perspective. The President is promoting ethanol as a way to help reduce Middle East oil imports 75% by 2025. Ford and General Motors plan to invest their capital in E85 as the companies help increase the number of E85 stations in the Midwest. The two automakers intend to build as many as 600,000 vehicles this year with the special equipment needed to burn E85. About 5 million E85 compatible vehicles are already are on the road. Report Your Experience
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