May 22, 2019 | Madison – A study published this month shows that the addition of biofuels into petroleum is saving consumers significant dollars at the pump.
The study, titled The Renewable Fuel Standard Program: Measuring the Impact on Crude Oil and Gasoline Prices, notes that the addition of ethanol has increased fuel supplies by roughly 1 million barrels each day, and reduced the price of crude oil by an average of $6 per barrel between 2015 and 2018. This resulted in lower prices at the pump, by an average of 22 cents per gallon, or nearly $5 per customer each time they fill up.
“This study confirms what we already know, that the increased use of clean, renewable biofuels is good for the consumer, good for energy independence and good for the economy,” says Erik Huschitt, President of the Wisconsin Biofuels Association.
The Renewable Fuel Standard (RFS) has required refiners to blend renewable fuels with gasoline and diesel since 2015. This new study shows that the RFS is succeeding, at both increasing our use of local, renewable fuels, and reducing prices at the pump.
“Wisconsin has no oil wells but we have lots of farmers and corn. We produce enough ethanol to to not only meet Wisconsin’s needs, but also to export a significant share to other states and other countries,” Huschitt added.
The study was conducted by economist and energy policy expert Dr. Philip K. Verleger.
Wisconsin has 9 ethanol plants and 1 biodiesel plant producing over 550 million gallons of renewable fuel each year. These plants purchase their corn from thousands of farmers within the state, adding an average of $4.2 billion to the state’s economy.
Learn more about the study at WIBiofuels.org or contact WBFA at 608-819-0150.