Ethanol Fuel No Longer Cheap Choice

By Josh Hinkle, Reporter

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By Josh Hinkle

Story Created: Jun 28, 2006 at 8:06 PM CST

Story Updated: Jun 28, 2006 at 9:37 PM CST

CEDAR RAPIDS - Ethanol fuel. Farmer-friendly Environmentally-excellent. But no longer the cheaper choice.

Now, take a peek at the pump. You'll find, at some places, the ethanol blend costs ten cents more than the unleaded.

Betty Price said, "They make gas prices so expensive, it's hard for people."

Jeremiah Levendusky said, "I feel that it's a lot more expensive than it was previously."

Neither supplies nor government policy explain the price of ethanol-blended fuel at the pump. Iowa is still the nation's leading ethanol producer.

The DNR says, 70 percent of the time, Iowans choose this fuel over others. But that choice might soon change.

Tiffany Ramos says, "I need to save money. I've got three children. I need to save money any way I can."

Tom Parman said, "I think it's going to have to stay competitive with the regular unleaded prices or people will buy whatever's cheaper."

The industry expects to produce more than one billion gallons of additional ethanol in the next two years. Whether its cost levels out and consumers carry on, the future of this fuel is still unclear.

The head of the Iowa Corn Promotion Board says she's concerned about the higher ethanol prices. Pam Johnson is hoping drivers will continue to choose the ethanol blend to help Iowa's economy.

Email Josh Hinkle at Josh.Hinkle@kcrg.com

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