Why Is E85 So Cheap

Are you looking for an affordable fuel option that can help you save money while being environmentally responsible? Look no further than E85! This fuel, which contains 85% ethanol and 15% gasoline, is becoming increasingly popular due to its low cost compared to traditional gasoline.

But why is E85 so cheap? In this article, we’ll explore the key factors that contribute to its affordability and explain how you can take advantage of this cost-effective fuel option.

One of the primary reasons why E85 is so cheap is due to its composition. Ethanol, which is made from renewable resources such as corn and sugarcane, is cheaper to produce than gasoline, which is derived from non-renewable fossil fuels. Additionally, the government provides subsidies and tax incentives to encourage the use of renewable fuels like ethanol, which further reduces the cost of E85.

But that’s not all – availability and accessibility also play a role in E85’s affordability. With more and more gas stations offering E85 as an option, drivers have greater access to this cost-effective fuel.

The Composition of E85

If you’re wondering why E85 is so cheap, it’s because the fuel is composed of 85% ethanol and 15% gasoline. Ethanol, a renewable fuel made from plant materials, is considerably cheaper to produce than gasoline. Additionally, ethanol content in E85 is subject to federal and state tax incentives, further reducing the price per gallon.

Although the lower cost of E85 may seem appealing, it’s important to note that it has a lower fuel efficiency compared to gasoline. This means that you’ll need to use more E85 to travel the same distance as you would with gasoline. However, if your vehicle is designed to run on E85, the lower cost per gallon may offset the decrease in fuel efficiency.

Ultimately, the decision to use E85 or gasoline depends on your individual driving habits and the availability of E85 fueling stations in your area.

Renewable Resources

You can’t deny that using renewable resources to produce fuel is an excellent way to save money while also helping the environment.

E85 is a type of fuel that is made from a combination of 85% ethanol and 15% gasoline. The ethanol used in E85 is made from renewable resources like corn, sugarcane, and switchgrass. This makes E85 a sustainable fuel option that has a positive impact on the environment.

One of the main benefits of using E85 is that it reduces greenhouse gas emissions. When compared to traditional gasoline, E85 produces fewer emissions of carbon monoxide, nitrogen oxides, and other harmful pollutants. Studies have shown that the use of E85 can reduce emissions by up to 30%.

Additionally, E85 has a higher octane rating than traditional gasoline, which means it can provide better performance for high-performance engines. So, not only is E85 better for the environment, but it can also provide better performance for your vehicle.

Government Subsidies and Tax Incentives

Government subsidies and tax incentives can make renewable energy more accessible and affordable for individuals and businesses. This is particularly true for E85, as the government has played a significant role in promoting the use of ethanol as a fuel.

Political influence has been a driving force behind the government’s support for E85. The Renewable Fuel Standard (RFS), for example, requires a certain amount of renewable fuel to be blended into gasoline each year. This policy has helped to create a market for ethanol and has stimulated investment in the industry.

In addition to political influence, there are also economic impacts to consider. The government’s support for E85 has helped to create jobs in the ethanol industry, which has had a positive impact on local economies. Furthermore, the lower cost of ethanol compared to gasoline has helped to reduce fuel costs for consumers. This has been particularly beneficial for those who live in areas where E85 is readily available.

Overall, government subsidies and tax incentives have played a key role in making E85 a more affordable and accessible fuel option for consumers.

Availability and Accessibility

Nowadays, it’s easier to find E85 fuel stations as more gas stations offer it as an alternative fuel option. This is because E85 is made from ethanol, a renewable resource produced from corn, sugar, and other plant materials. As a result, the production costs of E85 are lower compared to traditional gasoline.

Since ethanol is widely available in the United States, E85 is also more accessible than other alternative fuels. Ethanol production is concentrated in the Midwest, where corn is abundant. The ethanol is then transported to other regions via pipelines, rail, and trucks. This distribution method helps to keep costs low and ensures that E85 is available in most parts of the country.

Overall, the lower production costs and accessible distribution methods make E85 a more affordable alternative fuel option for consumers.

Considerations for Drivers

When considering using E85 as a fuel option, it’s important to understand how it may affect your vehicle’s performance and fuel efficiency.

E85 has a lower energy density compared to gasoline, which means it may result in a 20-30% decrease in fuel efficiency. This is because the engine requires more E85 to produce the same amount of power as it would using gasoline. Therefore, you may need to fill up your tank more frequently than you would with gasoline.

Additionally, not all vehicles are compatible with E85. It’s essential to check your vehicle’s owner’s manual or consult with a mechanic before using E85 as a fuel option.

While some vehicles are designed to run on E85, others may require modifications to the engine or fuel system to operate efficiently. In some cases, using E85 in a non-compatible vehicle can lead to engine damage or premature wear and tear.

Therefore, it’s crucial to consider your vehicle’s compatibility and the potential impact on fuel efficiency before choosing E85 as a fuel option.


In conclusion, E85 is cheaper than traditional gasoline due to a combination of factors.

Firstly, the composition of E85 is made up of renewable resources, which are generally cheaper to produce compared to non-renewable resources.

Additionally, government subsidies and tax incentives have played a major role in driving down the cost of E85. These incentives encourage the production and use of biofuels, making them more accessible and affordable for consumers.

Furthermore, the availability and accessibility of E85 also contribute to its affordability. E85 is widely available in many parts of the United States, making it a viable option for drivers who want to save on fuel costs.

However, it’s important to note that not all vehicles are compatible with E85, and some drivers may need to make modifications to their cars in order to use this type of fuel.

Overall, E85 offers a cost-effective and environmentally-friendly alternative to traditional gasoline, making it a smart choice for drivers who want to save money and reduce their carbon footprint.