Ethanol production enjoys a 51¢ per gallon subsidy. Blenders enjoy a 45¢ per gallon subsidy. Take those away, and you will find ethanol prices exceeding $2.59/gal.
That (the subsidies for ethanol) likely explains why pure gas is considerably more expensive than ethanol around here. Frankly, I’m really surprised the government hasn’t mandated ethanol and banned pure gas for automobiles outright. It’s for the planet...
Dude, those breaks have been gone for two(?) years now.
Didn’t those go away in 2011?
http://www.nytimes.com/2012/01/02/business/energy-environment/after-three-decades-federal-tax-credit-for-ethanol-expires.html?_r=0