President Joe Biden has a federal solution to lowering the price of gas, but it’s not a serious one.
The Environmental Protection Agency will issue a national waiver to lift some restrictions on the use of E15 fuel. The waiver will last from June 1 to Sept. 15. It’s a cronyist measure that will increase the cost of living in other ways. E15 fuel is a blend that includes 85% gasoline and 15% ethanol. The latter is a biofuel made from produce, mostly corn, and soybeans.
Thanks to the George W. Bush-era Renewable Fuel Standard, gas we buy at the gas station contains 10% ethanol. Meanwhile, E85 has 50% more ethanol than the average gallon of fuel one puts into their car. It’s a corporate welfare handout to big agriculture — one that artificially raises demand for crops. And when demand rises, so do prices. The move won’t alleviate inflation: It will likely make the problem worse.
Every food product with corn in it will become more expensive. That’s not just corn on the cob or canned corn. This also includes many breakfast cereals, sugary snacks, and the cornmeal used to feed livestock. Therefore, Biden’s move will increase the cost of meat.
The benefit? The White House says E85 will knock the cost of gas down by 10 cents per gallon. It’s unclear if it will work as they intend, however. Ethanol is 30% less fuel-efficient than gas, so one has to purchase more gas to travel the same distance (in this case about 1.67% more). Plus, increasing the demand for ethanol will increase the price of ethanol. Not to mention, gas prices are already dropping.
If Biden wanted to make fuel more affordable, his administration would offer Jones Act waivers. Instead, this is about giving the ethanol lobby something they want and pandering to politicians in the Midwest.
Sens. Chuck Grassley and Joni Ernst, both Iowa Republicans, are big supporters of ethanol. The same is true of Sens. Dick Durbin and Tammy Duckworth, both Illinois Democrats. That’s because those states grow a lot of corn — and special-interest groups who want to artificially increase demand for corn can donate money to their campaigns.
Special-interest groups will get even richer from this Biden administration rule change. However, it won’t benefit the American people; it will make the cost of living even higher for them.
Tom Joyce (@TomJoyceSports) is a political reporter for the New Boston Post in Massachusetts.
