The average ethanol content of gasoline sold in the U.S. surpassed 11%for the second consecutive month in June, and the 12-month average blend rate hit a new record of 10.58%, according to U.S. Energy Information Administration data reviewed by the Renewable Fuels Association.
A large majority of the gasoline sold in the U.S. contains 10% ethanol, a blend known as E10, and the new EIA data demonstrate that sales of mid-level blends like E15 and flex fuels like E85 have accelerated this year. Ethanol has been priced at a discount of $1 per gallon or more to gasoline blendstock at the wholesale level, and Renewable Fuel Standard RIN credits have provided additional value.
“Ethanol’s blending economics have been compelling this spring and summer, and consumers and fuel suppliers have clearly responded,” said RFA Chief Economist Scott Richman. “The response would have been even greater if legislation permanently allowing year-round sales of E15 had already been enacted. The additional volume would have helped hold down prices at the pump even more, at a time when U.S. fuel supplies have tightened and oil refineries have been running near full capacity.”