Ethanol group: Ethanol saved motorists $100 million over Memorial Day weekend

As a political battle rages over the virtues of ethanol and whether it's driving up food costs, an ethanol group said American motorists are saving more than $100 million over the Memorial Day weekend.

According to the American Coalition for Ethanol, based on national rack prices published Friday, the net price of ethanol is between $1.15 and $1.30 a gallon less than unleaded gasoline, a lower cost which equals a savings to American motorists of $35 million a day and more than $100 million over the three-day weekend.

Nebraska AAA reported Sunday another record high for gas prices in Grand Island as the price of regular gasoline without ethanol reached $3.86 per gallon. Diesel prices reached a record high on Saturday at $4.67 per gallon.

 “Ethanol's savings are real, and although it might not seem like it because of high gas prices, ethanol is saving motorists almost $35 million a day right now," said Ron Lamberty, Vice President/Market Development of the American Coalition for Ethanol (ACE). "Without ethanol, Americans would pay a billion dollars more each month for gas," he said.

According to Merrill Lynch analysts, if ethanol producers weren't expanding their output, oil and gas prices would be 15 percent higher, which at today's prices would mean oil at $155 per barrel and gas at $4.45 a gallon.

According to data from the Department of Energy, for the first time in 30 years the United States has reduced its imports of foreign oil. 

"Ethanol is helping build positive momentum in this country toward shaking off the weight of shockingly expensive oil, and it's saving consumers money in the process," said Brian Jennings, Executive Vice President of ACE.