How high would gas prices need to be to make corn based ethanol a cheaper option?



  1. 0 Votes

    Assuming corn prices are at $2 a bushel, the cost of producing a gallon of ethanol is roughly $1.20.  However, because ethanol does not produce as much energy as petroleum, that is equivalent to almost $2 a gallon, or $50 to $60 per gallon of oil.  Without an ethanol subsidy (which ended on Dec. 31), oil prices would have to be between $50 and $60 dollars a barrel for ethanol to be cost-competitive with petroleum based fuel sources.

Please signup or login to answer this question.

Sorry,At this time user registration is disabled. We will open registration soon!