The Ethanol Tax
Minnesota Public Radio:
For all the talk about the ruin to be caused by the gas tax increase in Minnesota, comparatively little is said in the state these days about the “ethanol tax,” which has had a significant impact in the cost of operating a vehicle and may, according to some people, have a role in rapidly increasing food prices.
For the last few months, I’ve been conducting an unscientific experiment: filling up my car with regular gasoline and comparing the performance with the ethanol blends I’m required to use in Minnesota.
Although Wisconsin drivers get a choice, lawmakers are considering an ethanol mandate, which would require 10 percent of gasoline to be a blend of ethanol, rising to 25 percent by 2025.
Here’s a copy of the legislation. Minnesota, on the other hand, requires all gasoline sold to be at least 10 percent ethanol.
I snuck across the border several times to fill up the 2004 Chevy Cavalier (the official car of News Cut) with ethanol-free gasoline. The result? My car got about 32.6 miles per gallon. The Minnesota blend gave me almost 29 miles per gallon, a 12% drop in performance.
Calculating current prices (the average price of gasoline in Minnesota now is $3.235. In Wisconsin it’s $3.40), driving 1000 miles on Minnesota gas costs $111.55 (11.2 cents per mile). On Wisconsin gas, 1,000 miles costs $104.29 (10.4 cents a mile), a $7.26 savings, even though the difference in the price of a gallon is almost 17 cents. The “ethanol tax” works out to 2.3 cents a gallon. Read more.
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