Quote:
Originally Posted by PJStough
The ethanol mandate reduces the demand for gasoline, therefore the price of gasoline.
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Ethanol has roughly 66% of the BTUs of 100% gasoline.
So, 100 gallons of ethanol used in place of gasoline will save roughly 66 gallons of gasoline.
Now deduct the diesel and gasoline used in the production of the corn, moving the corn to market, distilling the alcohol, yada, yada.
I'm having trouble believing it reduces the demand for gasoline at all. It probably actually increases the demand for diesel.