Will Georgia's Ethanol Production influence Gas Prices?
by WABE radio
Feb 12, 2013 | 1696 views | 2 2 comments | 5 5 recommendations | email to a friend | print
(AP/Rick Bowmer)
(AP/Rick Bowmer)
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Most gas you put in your car contains 10% ethanol. Most ethanol comes from corn, which is in short supply due to drought. As a result, many plants across the country have gone idle, including Southwest Georgia Ethanol, in Camilla, Georgia.

When in production, Southwest Georgia Ethanol is the only 100-million-gallon plant in the state. Though idle since October, President Murray Campbell says they expect to restart production sooner than plants in the Midwest. “We know we are going to restart in July. We've been booking corn with local farmers since late fall and early winter.”

When the plant starts back up, Campbell says it could impact the price of gas but not necessarily. “I don’t know if our particular restart will decrease the price of gasoline significantly but it will be cheaper for customers that we have, they’ll be buying ethanol cheaper than having to buy it from an outside area."

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geekazoid
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February 12, 2013
The government says 10% ethanol in gasoline lowers mileage 3-4%. Anecdotal evidence in hundreds of online posts indicates 6-10% is more reasonable. Plus when you consider the energy cost involved in production of ethanol, we may be reducing the volume of petroleum by 10%, but the energy cost makes it actually more expensive. High priced "pure gasoline" is just high-profit.
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geekazoid
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February 12, 2013
If we started buying sugar cane ethanol from Brazil, the price would skyrocket because of added transportation costs and competition. From 2009-2011, Brazil had to actually import ethanol from the US because of an agricultural crisis in sugarcane farming. Ethanol/gasoline blends in Brazil run 18-25% by law. Flex-fuel engines that can use 100% ethanol or blends have been made there for nearly a decade, but pure ethanol is not readily available there currently.

Brazil had about four million cars and light trucks running on pure ethanol in the late '80's, but that market collapsed because of production shortages and they went back to gasoline blends.

Ethanol both reduces mileage and available power. Period. There is no contrary research that is credible on this point.

As for 15,000 mile oil changes, ethanol in fuel dilutes oil and attracts water. You will certainly have fewer deposits in your oil, but reduced viscosity puts engines at risk.

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