In a manner of speaking, yes. The federal government already mandates a 10% ethanol blend with petroleum fuels. This means that the price of gas at the pump is already lower as a result of the ethanol blend.
But, strictly speaking, ethanol functions as a competitor to the petroleum industry. High gas prices generally shift demand to alternative fuels, and vice versa.
Generally, when a suitable substitute for anything is made available on the market, the cost of the original good goes down because the demand for the original good decreases. This is pretty basic economics. If people can use biofuels in the same way that they use fossil fuels, then there will be a lower demand for fossil fuels and the price of fossil fuel will decrease.
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