Here is some new data to complement the previous post regarding how much ethanol is saving you at the pump.  As previously shown, ethanol saves the consumer about 13 cents a gallon every time they choose to use E10 instead of regular unleaded.  It is important to know that ethanol plays a significant role in keeping gasoline prices overall lower. Research from Iowa State University suggests that in the Midwest, the production of Ethanol helps keep gasoline prices about 40 cents per gallon lower.  Ethanol production competes with gasoline and also increases the fuel supply so it can better cope with shocks resulting in the lower prices to the consumer.

*The full working paper published by Iowa State University can be found at http://www.ethanolfacts.com/ETHL2008/downloads/CARD_impactongasprices.pdf