The Auto Writer

From time to time I like to check fuel prices, figuring that others all across the country are sharing in my misery. I’m not sure I’ll ever get used to paying $3 or more per gallon for gasoline, but I do have one consolation to high prices at the pump — I work from home and put less than 2000 miles on my car annually.

Since returning from my trip to the Detroit Auto Show, I’ve been giving a lot of thought to alternative fuels. Ethanol has been a disappointment because distribution is limited and prices aren’t that different from straight gasoline to justify switching. Besides, when fuel economy drops 20% or more when using ethanol, the difference in price must be greater than 20% in order to come out ahead. Sure, it is nice to be “environmentally friendly” but the average consumer cannot afford green options when other financial pressures weigh in.

I know that I am not the only one keeping tabs on ethanol prices as interest in this fuel option continues to grow. E85Prices.com is one site tracking fuel prices, by relying on consumer input to list ethanol prices across the country; they not only feature the price for ethanol, but the price for straight gasoline too. Of particular interest to me is the price spread (calculated in percentage points) to show the difference between the two fuels. Clearly, some stations offer enough of a price differential to justify E85, while others do not. Interestingly, not all of the best deals are for corn belt drivers as some stations in South Carolina and Pennsylvania are offering good prices.

Ultimately, lower prices will come through the development of cellulosic ethanol a fuel that uses common household waste products (everything but metal and glass) to produce fuel. That, coupled with a reduction in state and federal taxes could make E85 the fuel of the future and supplement fuel cell powered cars that may soon dominate our roads.

E85 isn’t a bargain everywhere you go and not every car can run on this fuel, but its importance as a fuel option is likely to grow over the next few years.