Freedom of choice: E20 ethanol blends take the value crown from gasoline, E10

Putting it all together

Putting the data together form the two sources gives us a chance to not only compare cost per gallon — but cost per mile.

We’re curious to know: how do the various blends of ethanol stack up to ethanol-free gasoline, which is selling (where available) at around a 15-cent per gallon premium to E10 ethanol blends? (Although friends of the Digest have pictures of ethanol free gasoline retailing for as much as 20 cents more per gallon).

In short, where would a true Libertarian buy fuel — thinking only about the freedom to pursue the greatest value expressed in cost per mile?

To create our chart, we took an average of the fuel economy, by blend, from the EERC study and applied it to the real-world prices see at E85prices.com. (Regretfully, the EERC study did not look at E15 ethanol blends — so weren’t able to have a view on the market values there).

The clear winner, based on the data, is E20 blends of ethanol – with a real world price discount of 35 cents a gallon compared to straight gasoline, after taking into account the changes in fuel economy.

Interestingly, E85, E50, and E30 all performed better, on straight value, than straight gasoline.

But for fans of ethanol-free gasoline, you can take some comfort in the fact that you are saving a penny per gallon when buying ethanol-free gasoline, compared to E10 ethanol that is standard issue around the country. You would also experience better miles per fill-up, because of the increased range of gasoline. Balance that against the improved performance of ethanol blends when it comes to greenhouse gas emissions.

Two of the blends that are favored by many ethanol advocates — E30 and E10 — performed substantially worse than E20 ethanol, on an adjusted cost per gallon basis.

The Bottom Line

Whether you are an environmentally-motivated ethanol advocate or a cost-focused value-quester — there’s one conclusion that is inescapable. Freedom of choice unlocks market forces, and allows individuals to pursue the fuel solution that works best for their vehicle and driving pattern.

The right solution will differ based on driving pattern, region and type of car. For some, straight gasoline will offer the right solution; for most, there’s an ethanol blend out there that can drive savings for you.

If we lived in a world of straight gasoline, or E10, or E30 — none of us would be as well off, economically, as with a wide range of differentiated fuels and prices that allows us to capture far more significant savings.

Three cheers for free markets with freedom of entry and freedom of choice.