Is The Increase Of Ethanol Production Really Raising The Price O

Tags:: General Motors Ethanol Corn Gas Cars Flex Fuel

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By: Medialink
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Updated: 23-Nov-09
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Added: 27-Jul-07

As a replacement for gasoline in automobiles, ethanol is touted by the President and Congress as a solution to reduce our dependence on foreign oil. But as ethanol production has risen this year, so has the price of corn, the primary grain used today to produce ethanol. That has many people blaming ethanol for the rise in food prices.

A box of corn flakes only has a nickel’s worth of corn. What impacts consumer food prices far more than the price of corn is the energy, the marketing, the packaging, everything else that goes into bringing a box of corn flakes into grocery stores. In fact, studies show that the price of gasoline has more than twice the impact on consumer food prices than does the price of grain.

All automobiles are capable of running on fuel that is 10% ethanol and 90% gasoline. Flex Fuel vehicles can run on up to 85% ethanol.

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