In a bid to lower fuel prices amid skyrocketing oil costs, the Trump administration wants to add a waiver on ethanol-rich gasoline. Although typically only sold in winter months, the waiver could exempt 15-percent ethanol blends for summertime use, allowing refineries and gas stations to stock cheaper gasoline. The move isn't unprecedented, with the Biden administration using the same tactic to lower fuel prices in 2022, 2023, and 2024. The waiver would make E15 gasoline cheaper at the pump, which might ease concerns over high prices, but it could also make cars less efficient since ethanol isn't as energy-dense as gasoline.
Some Big Drawbacks To The Plan
One of the reasons E15 gasoline isn't sold in summer months is that the increased ambient temperatures lead to greater fuel evaporation. Combusted ethanol tends to produce fewer greenhouse gases than gasoline, but uncombusted (read: evaporated) ethanol can lead to increased ground-level smog and cause respiratory issues in humans. The waiver would exempt the producers of E15 gasoline from seasonal restrictions, allowing them to sell the fuel type even when the weather is warm out.
Furthermore, ethanol – which comes from corn – contains a lot less energy per unit than gasoline, meaning you need more of it to produce the same amount of power versus simple petroleum distillates. For example, cars that are E85-capable, like the Chevrolet Silverado 1500, see efficiency numbers fall by 30 percent or more when running on corn-fortified gas, and according to the Environmental Protection Agency, annual fuel costs rise by about the same amount despite 85-percent ethanol mix being cheaper at the pump. It stands to reason that even if 15-percent ethanol gas is cheaper than E0 or E10, the savings on each tank of fuel may not compensate for the reduced efficiency.
Furthermore, flex-fuel vehicles are able to run on E85 thanks to specific materials used in the fuel lines and gas tank that resist the corrosive properties of ethanol. Most other cars, however, are not so equipped. It's generally considered safe to run 10-percent ethanol gasoline in most modern cars, but classics may suffer some increased wear and tear even on E10. Running 15 percent ethanol could exacerbate the problem, including in some newer vehicles.
Source: Bloomberg
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