E85 Prices vs. Gasoline Prices
The price of E85 fuel, which is also referred to as ethanol, can be higher or lower than the cost of regular gasoline in different parts of the country. In addition to the actual prices, other factors should also be taken into account when comparing the cost of gasoline and ethanol.The US Dept. of Energy’s Alternative Fuel Price Report for March, 2007 indicated that E85 prices were, on average, about twenty cents lower than regular gas prices. The difference varied regionally, from $0.91 less in the midwest to $0.28 more in the central atlantic region. It also listed the price of E85 in November, 2006 as being lower than gas, but by a smaller margin. The cost of ethanol was lower than most other alternative fuels in both months as well.
It should be kept in mind when comparing E85 and gasoline prices that the fuel efficiency of vehicles run on ethanol is lower, so more ethanol will have to be purchased to travel the same distance. On the other hand, E85 is likely to be cheaper than gas in most or all regions for vehicles which otherwise run on premium gas, even when poorer fuel efficiency is considered. Premium often costs about $0.25 more than regular. Several flex-fuel Mercedes station wagons and sedans made in recent years fit in this category.
Overall, the difference in cost between ethanol and gasoline depends upon the region, economic conditions, and the type of vehicle being used. You can use GasWatch.info to monitor E85, gasoline, and diesel prices in your area and across the nation.