Study Shows Ethanol Saves Midwesterners $1.69 Per Gallon

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SIOUX FALLS, S.D. – (DRG News) A new study done through two Midwest university economists indicates that drivers in the region saved almost $1.70 per gallon of fuel last year because of domestic ethanol production and its usage. The study was done by Dermot Hayes of Iowa State University and Ziaodong Du of the University of Wisconsin. The results of the study were released yesterday by the Center for Agricultural and Rural Development. The president of the South Dakota Corn Utilization Council, Chad Blindauer, says most people don’t know how much more it would cost to fill up their vehicles if ethanol wasn’t available. The study showed that ethanol dropped the average American household’s spending on gas by more than $1,200 in 2011. The average price for a barrel of crude oil increased to $95 in 2011, up from $80 in 2010. The study showed that drivers would have paid about $4.60 per gallon last year if 13 billon gallons of ethanol wouldn’t have been available. Blindauer says having access to American ethanol means savings for South Dakotans and consumers across the country. He says motorists and policy makers should understand the positive impact the ethanol industry has had on the United States.

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