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NEW STUDY: ETHANOL HOLDING DOWN GASOLINE PRICES DURING IRAN CONFLICT
Sep. 9, 2026
Source: Renewable Fuels Association news release
Washington, DC -- Blending ethanol into the nation's fuel supply has helped to substantially lower gasoline prices during the ongoing Iran conflict, a new study for the Renewable Fuels Association shows. Prepared by George Hoekstra, a 35-year veteran of the petroleum refining industry, the study concludes that the average E10 cost-savings advantage has been 38 cents per gallon since the Iran conflict began.
"It's common knowledge that blending ethanol saves drivers money--consumers see evidence of that every time they pull up to the pump. But this new study carefully quantifies the economic benefits of using ethanol during a period of high crude prices and geopolitical instability," said RFA President and CEO Geoff Cooper. "As global petroleum stocks continue to tighten, American-made ethanol is extending domestic fuel supplies by more than 1 million barrels per day and significantly lowering prices at the pump for consumers.
"This report should serve as a compelling reminder to policymakers that the fastest way to lower fuel prices is to blend more--not less--ethanol into our gasoline. The findings underscore the urgent need for Congress to pass legislation allowing nationwide, year-round E15 as quickly as possible."
The Hoekstra report shows that E15's economic benefit during the Iran conflict has been even greater, offering a lower cost of 57 cents per gallon. The study looks at three economically distinct sources of ethanol value: The value of replacing gasoline volume with lower-cost ethanol, the octane value of ethanol, and the value of Renewable Fuel Standard compliance credits called RINs.
However, even when one leaves out the impact of RFS blending obligations and RINs, E10 still offered a 17.5 cents per gallon cost advantage compared to regular gasoline, showing that ethanol has substantial economic value even before counting the RIN credit value. Hoekstra also estimates that for the full year through early August, the non-RIN portion equated to overall savings of $18.7 billion.
About the RFA
Since 1981, the Renewable Fuels Association has been the leading trade association for America's ethanol industry, working to drive expanded demand for American-made renewable fuels and bioproducts worldwide.
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