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Study shows ethanol as octane saves $0.39/gallon in 2025.. higher blends = more savings.

Posted 5/3/2026 23:44 (#11636693)
Subject: Study shows ethanol as octane saves $0.39/gallon in 2025.. higher blends = more savings.

This paper is a bit wonky.. but explains why blending ethanol for its high octane value makes sense in 2025.

https://ethanolrfa.org/file/2967/Octane%20Value%20of%20Ethanol_Hoekstra_2025-06-24.pdf

The cost of octane has increased over time while higher compression engines with turbochargers require higher octane therefore, increasing demand.

Since the E15 component was taken out of the farm bill.. ethanol will get its own stand alone up or down (supposedly) here in a few weeks. Maybe this is a blessing as we could settle this once and for all.. while we’re doing it.. we should push for E 30 which could save the economy over a Dollar per gallon.. or over $159 billion.

It’s estimated that upwards of 60 House Democrats will support ethanol offsetting the hard liner freedom caucus / anti ethanol crowd. So this may in fact be doable.

There are several misconceptions which we must fight..

1) Ethanol is subsidized. It is not, there is a 10% inclusion due to the clean air act requirements.

2) Allowing higher blends nationally allows the CONSUMER to decide. It’s not universal but ethanol blended gasoline is cheaper.. depending upon how it is supplied and marked up. Generally speaking ethanol blended gasoline will drive down consumer costs.

3) Since prices dictate inclusion rates.. impacts will be regional as the Corn / Ethanol belt will probably see the highest benefits to drivers. However, the added competition should spread across the country.

4) US ethanol markets are balanced.. with decent exports.. while increased gasoline prices may hinder gasoline usage. Favoring EVs. Therefore over time gasoline / ethanol usage may soften. Consequently a large part of the petroleum industry actually supports higher ethanol inclusion rates. History has proven that high prices lead to lower gasoline usage.

5) This will not spike corn prices since the ethanol industry.. with small expansion.. is already running at capacity. Over time.. as Corn Yields grow (irregardless of fuels policy) and crop sizes grow.. supply for ethanol demand will grow.

Its time to act.