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Critical flaws in new ethanol study

Hydrocarbon Engineering,

AFPM President Charles T. Drevna has released the following statement with regards to a study issued on 15th May 2012 by the Centre for Agricultural and Rural Development that claims ethanol reduced wholesale gasoline prices by an average of US$ 1.09/gall. in 2011.


The statement

"This is a flawed study based on false assumptions that distorts statistics to reach the predetermined and erroneous conclusion that adding more ethanol to gasoline saves consumers at the pump. Today’s study is just an update of an equally flawed 2009 study that even the authors conceded is not a reflection of reality. In their original 2009 report, the authors of the study wrote: …it would be wrong to extrapolate the results of today’s markets."

"Increased amounts of ethanol in gasoline will likely lead to consumers paying even more at the pump. According to the AAA daily fuel gage report, fuel that is 85% ethanol (E85), significantly decreases fuel economy and is more expensive than gasoline on a miles per gallon basis due to its lower energy content, even at today’s prices. The AAA report notes that if consumers were to use E85 today, they would be paying nearly 60¢/gall. More than if they filled up with regular gasoline.

"The best products always come on top when consumers are allowed to make purchasing choices in the free market. If ethanol and other biofuels are such superior products, producers should join petroleum refiners in calling for an end to the Renewable Fuel Standard. The American people will benefit most from fair and open competition on a level playing field."

Adapted from a press release by Claira Lloyd

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