IRFA: Iowans can save more than $1 per gallon with E85

By Iowa Renewable Fuels Association | November 10, 2017

In recent weeks, Iowa drivers have had access to exceptionally low E85 prices, in several cases more than $1 cheaper than regular E10. These tremendous savings stem from the Renewable Fuel Standard.

Some Iowa ethanol plants have recently sold E85 to retailers for as little as 55 to 65 cents per gallon, by pricing the RFS “RIN value” into the wholesale cost. When retailers also pass the RIN value on, their customers reap the reward of low E85 prices, such as $1.28 per gallon at Fuel Time in St. Ansgar Nov. 6.

“This is how the RFS is supposed to work,” said Iowa Renewable Fuels Association Executive Director Monte Shaw. “When the value of the RIN is passed through, consumers benefit from lower prices and demand for renewables increases. Unfortunately, some oil refiners pocket the RIN value and then have the audacity to claim the RFS is broken. The truth is, in Iowa today it is actually less expensive to buy E85 from a retailer like Fuel Time than to buy wholesale E85 from some oil refiners at the terminal. Policy makers should not be fooled by Big Oil threats of high prices and broken legislation. The facts are as clear as the prices on Fuel Time’s sign.”

RINs are the credits companies receive under the RFS for blending ethanol. Those credits can be traded and sold as a commodity.

For more information on wholesale E85 prices, click here.