Ethanol Fraud and Why You Pay More at the Pump


Ethanol Fraud and Why You Pay More at the Pump
The Fiscal Times
April 3, 2013

Why in the world is the government still forcing ethanol down the gas tanks of American consumers? Ethanol was meant to help clean up the air and to keep gasoline prices in check. It does neither. Instead, it degrades the environment and is currently boosting gas prices. Talk about a teachable moment. No program could better explain why so many Americans oppose Big Government.

Most Americans probably assume that corn-based ethanol is “green” – it is not. Numerous studies have shown that ethanol use does not significantly lower emissions, but instead actually harms the environment. That conclusion has led numerous green groups to abandon their earlier support for ethanol.

In 2011, Greenpeace and the Clean Air Task Force (in conjunction with several business and farm organizations) requested hearings on the Renewable Fuel Standard that mandated ethanol use. In a letter to Senators Inhofe and Boxer, they cite a study by The National Academy of Sciences, which found “that using corn ethanol in engine fuel is increasing air pollutants, exacerbating global warming, degrading water sources, and damaging biodiversity.”

Meanwhile, instead of helping to drive down gasoline prices, the mandate is doing exactly the reverse. Crude prices today of $96 a barrel (WTI) are 8.5 percent below year-ago levels, and demand for gasoline has dwindled steadily since 2007 – both factors which should be pressing prices lower. But, because refiners are struggling to comply with ethanol rules built for a different age, gasoline prices are stuck at sky-high levels.

Another problem with government-mandated ethanolis that the shift from food production to the variety of corn used for ethanol has diminished food supply, driving up food prices. Ethanol corn is a special variety that is not suitable for use as food.

This is the kind of deadly stupidity that happens when government puts its money and muscle behind ill-conceived Enviro-Fads and -Hypes!


What I found ironic is the group that lobbied for ethanol production in the United States, is now lobbying to stop it.


I would love to drop my insurance w/Farm Bureau. They, along with Archers Daniel Midland, are one of the very prominent lobby groups strong-arming for agri-subsidies.

What I don’t understand is that MANY farmers and ranchers who I know are not at all happy about having obligated themselves to corn for ethanol. So why are those who are supposedly the stongest supporters of agriculture in favor of it?
It doesn’t make any sense.

Re: Farm Bureau. They were once a good organization. Since changing presidents, they went from slightly left to leaving me wonder how they can stand up straight they’re bent so far to the left.
Anyway, they put out a quarterly magazine. Its Nov./Dec., 2012 issue had an indepth report on the drought of 2012. They sited the fact that ranchers have been selling off their herds since 2007, but conveniently left out why.

Now we know.

Do you see why I’m confused? They need the subsidies for ethanol corn 'cuz they can’t make any money with it, but insist on continuing to grow it, although it’s hard on the soil, and leaving ranchers in short supply of feed for their livestock.
Aren’t they fairly shooting themselves in the foot?


John Stossell did a report on what he considered the top 10 promises politicians made in 2010 that had worse consequences. One of them was ethanol which at that time was being subsidized $1.78 per gallon by the US government.