Because of the 2007 government mandate to sell 36 billion gallons of ethanol by 2022, EPA is set to boost the required percentage of ethanol in gasoline from 10 to 15 percent this summer and that means:
- billions of dollars more in government subsidies for companies that grow corn and convert it into ethanol
- higher gasoline prices
- higher prices for most food items at grocery stores and restaurants
- increased prices for corn (18 cents a barrel), wheat (15 cents a barrel), and soybeans (28 cents a barrel)
- reduced gas mileage for America’s cars across the board by 5.3 percent
- more repairs for engines not designed to run on 15 percent ethanol and because vehicle warranties won’t cover the damage caused by unapproved fuels, drivers will foot repair costs.
- added costs for consumers at gas stations where owners will have to replace pumps and underground storage tanks that meet certification standards for the elevated ethanol levels.
- added food costs as growers shift additional farm land away from food producing to take advantage of government-subsidized ethanol production instead of food.
For more information, read the Washington Times editorial “Stop ‘Big Corn’“
I.M. Kane
THE MILLSTONE DIARIES 