[eraser2005]

This is no longer true. You get more out of ethanol than you put in, but the balance is not overwhelmingly positive. It is not equal to the balance you get from drilling oil, for example.

The real reason prices rise with the addition of ethanol is that ethanol is more expensive to make than gas (though the energy balance is positive), and it is much more difficult to transport and store. Until ADM and others can ramp up ethanol production to meet demand and the oil companies get off their lazy bums and develop a distribution system for ethanol, you'll see shortages from production and distribution. Combine that with general market panic, and prices rise....

[Pukin Dog]

You get more out of ethanol than you put in

Not true. I know what studies you might be referencing, and they do not take into account some of the refining, shipping and multiple 'cocktail blending' costs.

[Gorjus]

You get more out of ethanol than you put in, . .

Only if you farm the original corn using mules instead of tractors. There was a recent article posted from Popular Mechanics, and it discussed the refining cost only (energy cost) and did indeed show a small, but net energy gain. However, if you add in the fuel required to plant, cultivate, and pick the corn, you end up with a net loss of energy.