Gas Prices And The Use Of E85

By Max Resnik

March 8, 2011 Updated Mar 8, 2011 at 7:33 PM EDT

FORT WAYNE, Ind. (Indiana’s NewsCenter) – Could E-85, the 85% ethanol based gasoline, prove to be the cure to curb the pain at the pump?

In the Summit City, E-85, on average, is going for about $0.40 less per gallon. But are people recognizing the difference and is the gas being sold? According to Mike Bates, Chief Operating Officer of Lassus Handy Dandy, consumers typically don’t grab the yellow pump handle until the difference in gas is closer to $0.50.

Since the use of ethanol-based gasoline began, a number of studies have shown a net-zero gain in the amount of miles per gallon added to one’s car.

Bates says, “We're really not having that big of a cost advantage. Most customers feel like you need at least fifty-cent-spread from less then gasoline to make up for the loss of gas miles per gallon.”

Bates says sales are typically at their highest when the difference between a gallon of regular unleaded and a gallon of E-85 is at least $0.70.

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