Dear Editor:

The petroleum industry would like you to believe that the recent $1.00 gasoline price spike is due to a problem at one refinery and is a rare occurrence affecting what is normally a “free market” system. Nothing could be further from the truth.

Because America has not built an oil refinery since 1977, the oil companies are able to manipulate prices by holding back production of refined petroleum products pretty much anytime they want.

Thankfully, over the last decade a glimmer of hope has developed for consumers. America’s ethanol industry has built 170 biorefineries since the year 2000. Together, they produce almost 15 billion gallons of motor fuel at a price that is lower than gasoline - even in the best of times for oil prices.

Ethanol is 100% renewable and 100% made in America. Ethanol also has an octane of 113, as opposed to the typical 84 octane of gasoline. With enhanced octane, engines run better, which is why 62% of new cars are can run on E15, not just E10.

Automakers see the benefits of higher octane for consumers, but oil companies refuse to allow the many “branded” stations under their control to sell E15. They also spend millions lobbying politicians for the repeal of the renewable fuel standard (RFS) so they can keep their stranglehold on retail pricing. The RFS is the only policy which allows market access for our fuels to the consumer.

Today wholesale gasoline is selling for $2.71 – almost exactly one dollar higher than just a few days ago. Ethanol is priced at $1.43 and has not moved appreciably with the gas spike.

Without ethanol in the marketplace, the price spike would have been much more severe. If we had more E15 in the marketplace, the price spike would have been noticeably less severe.

Remember that the next time you hear someone repeating the petroleum industry’s line about “free markets”. For oil companies, free markets mean markets controlled by them and higher prices for you.

Erik Huschitt

President, Wisconsin BioFuels Association