US Gasoline Soars with Record Ethanol Content Amid Iran War

The average ethanol content in US gasoline has reached a record high of 11.29% in May, exceeding the previous year's annual blend rate of 10.57%. This surge is attributed to compelling ethanol blending economics, with ethanol priced at a discount to gasoline blendstock of nearly $1.50 per gallon on average in May.

The price of renewable identification numbers (RINs) has also strengthened this spring and surpassed the price of ethanol for the first time ever, effectively making the net price of physical ethanol negative.

According to the Energy Information Administration, the increase in ethanol blend rate has provided a fuel cost savings of $0.14 per gallon of finished gasoline for E10 and $0.21 for E15. This translates to pump prices of E15 being $0.20 to $0.40 per gallon lower than regular unleaded gasoline.

The Renewable Fuels Association (RFA) is advocating for the passage of legislation permanently allowing year-round sales of E15, citing the benefits of robust RFS volume obligations and the potential easing of prices of D6 RINs associated with corn ethanol.