The Ethanol Farce - The American Spectator | USA News and Politics
The Ethanol Farce
by

Ethanol isn’t the answer, the WSJ reports today. In fact, it is inflating gasoline prices now that 10 percent is added throughout most of the country. Since its adoption as an additive, its price has increased by 65 percent to about $4.50 a gallon.

“We’d probably have retail gasoline prices between $2.30 and $2.40 a gallon if not for ethanol,” estimates economist James Glassman of J.P. Morgan.

Why is ethanol suddenly more expensive? Two major reasons: 1- The ethanol market is facing artificial constraints. If ethanol must be mixed at a fixed proportion to gasoline, its price will closely reflect gasoline’s price. The normal rules of supply and demand don’t follow. 2- Ethanol costs more to produce because it requires gasoline for transportation. Yep, we’re burning fuel just to produce and add a more expensive commodity to the fuel supply. Poor economics make a poor product.

Sign Up to receive Our Latest Updates! Register

Notice to Readers: The American Spectator and Spectator World are marks used by independent publishing companies that are not affiliated in any way. If you are looking for The Spectator World please click on the following link: https://spectatorworld.com/.

Be a Free Market Loving Patriot. Subscribe Today!

Fourth of july sale

Join the Fight for Freedom

One Year for Only $47.99

The offer renews after one year at the regular price of $79.99.