If ethanol is not working why is so much being purchased where it is availiable?

Question

in parts of the country where ethanol is availiable. it is being bought over gasoilne and has resulted in lowering the price of gas by 50 cents per gallon according to govt. reports.

Answer 1

to reduce the cost of petrol and to get maximum price for sugar cane growers

Answer 2

A great article to read that gives the whole story can be found at Newseek's website "Ethanol: A Tragedy in 3 Acts", I have linked it below.

Ethanol is subsidized by the government.  That means the government pays a portion of the production costs.  This artificially lowers the cost of ethanol and thus produces products such as E85 and Ethanol blend gasoline.

In a free market ethanol would not be as successful as it is now because the cost to produce it would have to  paid in full by the consumer.  Ethanol also has less energy than oil does.  This mean a gallon of gas has more energy than a gallon of ethanol so using E85 will not get you as far as using regular unleaded.

Answer 3

Unfortunately ethanol doesn't work because the materials used to produce it are even more limited then those used to make gasoline.  I'm not much one for conspiracies but its easy to see why 100 guys who have enormous shares in oil trade would convince you that gas is 50 Cents cheaper when realistically the incline in price is due to over investing in the first place.

Answer 4

Ethenol does work... it's just less efficient and it's killing our environment and economy.

It's an alternative to oil/gasoline though... and that's why there is such a big deal being made about it.

Answer 5

Ethanol does not work because we are diverting 30% of the US corn to fuel instead of food.  People are starving everyday because they cannot afford to buy food.  The World Health Organization estimates 600,000 people will starve to death this year and all so we can fill our cars.  Doesn't make sense.

Answer 6

That is wrong. Ethanol has not lowered gas prices, but it has lowered the gas mileage we all get substantially. Ethanol is a failed policy by our Govt, which does nothing except subsidize corn farmers at our expense. This is just one more piece of the fraudulent energy policy Bush & Cheney have given us, with big support from Farm-state legislators.