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Rising gas prices: How to save almost $12 on each fill up
We're all looking to save a few bucks every time we stop to top off the tank, but what can you actually do to save money? If you save up to 5 MPGs, you could save almost $12 per fill up.
(FOX 2) - In the great game of gas prices, President Joe Biden is hoping to ease the burden on consumers by lowering the cost with a plan to suspend a ban on higher percentage blend of ethanol that typically goes into effect over the summer.
E15 as it's known, is a mixture of 15% ethanol and 85% gasoline. It contains 5% more than normal fuels that are sold year-round.
But the fuel is associated with negative environmental impacts, including producing more air pollutants from its combustion and increased chemical runoff from the corn that it's derived from.
How to save $12 every time you go to the gas station
Biden plans to announce the temporary roll back of EPA regulations during an event in Iowa.
What is ethanol?
When drivers fill up their tank at gas stations, they're pouring a mixture of ethanol, a byproduct of corn, and gasoline.
Sometimes known as biofuel, it inhabits a quirky role in the energy market. Farmers in Iowa and Nebraska like it because the more ethanol used in fuel, the more opportunity to sell. Meanwhile, oil companies often argue against its use because of the extra cost for adding it into the mixture.
E10 versus E15
At the heart of the two mixtures is the amount of ethanol used in each source. E10 refers to the 10% ethanol used in the mixture, while E15 uses 15% ethanol in the mixture.
The Iowa Farm Bureau, a strong advocate for its use have argued that higher ethanol content makes gasoline cheaper for drivers, is better for the environment, and works in vehicles. However, due to its suspended use during the summer months, not every gas station has the capability to sell E15 since some don't consider it a worthwhile investment to build infrastructure for a produce only sold half of the year.
From June to mid-September, E15 fuel is unavailable to drivers.
The EPA regulates when it can be sold because of its association with smog and other air quality hazards.
Additionally, the land use that goes into growing corn is also associated with chemical runoff and reducing biodiversity in soil. In the past 20 years, the Intergovernmental Panel on Climate Change has changed positions on biofuels like ethanol as a source of greenhouse gas emissions.
Has the ban on E15 been lifted before?
Only a few years ago, then-President Donald Trump lifted the summer ban on E15 fuel in a bid to farmers amid his trade war with China. It lasted for two years before a federal appeals court struck down the rule change from the EPA.
The seasonal restriction was also lifted in 2017 for victims of Hurricane Harvey in Texas.
Gas prices in the U.S.
The peak oil prices that hit drivers in March have leveled off some in Michigan after reaching $4.26 a gallon.
Much of the increase in prices have been a result of the conflict in Ukraine when Russia's invasion rattled oil markets following global condemnation of the war and promises from many western nations to cease purchasing of oil from the country.
Biden already ordered the release of 180 million barrels of oil over the next six days to ease prices.
The latest bid to lift the summer ban on E15 is intended to help lower the price even further.