New Fuel at the Pump May Damage Your Car and Wallet

The Debate Over E15 Gasoline

Senate leaders are considering the next steps in making E15 gasoline available year-round across the country, following its passage in the House earlier this year. Proponents argue that this move could help reduce costs for consumers. However, the evidence supporting these claims remains uncertain.

Before senators proceed with any decisions, it’s crucial to examine whether the promised savings are genuine. As drivers approach gas stations, they might see a new option labeled as Unleaded 88, or E15. This fuel is now accessible at over 3,000 stations nationwide and has become a central topic of discussion in Washington. The main argument for expanding E15 is that it offers cost savings at the pump. Yet, consumers should understand what they’re purchasing before reaching for the nozzle.

Millions of vehicles and small engines currently in use were not designed to handle E15. Using it incorrectly can void warranties, damage equipment, and lead to expensive repair bills. Boats, motorcycles, generators, and lawn equipment are particularly at risk, as are other small engines and older vehicles. Many consumers remain unaware of the differences between E10 and E15 when choosing their fuel.

Ethanol has about two-thirds the energy content of regular gasoline, which means engines consume it more quickly, leading to more frequent refills. What seems like a discount may actually result in higher overall expenses. However, the core issue lies in the federal policy driving the expansion of E15.

The Renewable Fuel Standard, established in the mid-2000s, is a federal requirement that compels refiners to blend ethanol into the fuel supply. Adhering to this mandate adds a 30-cent-per-gallon cost to fuel. Although consumers do not see this charge explicitly, they end up paying for it every time they fill up.

For years, policymakers have aimed to reduce energy costs for American families. However, the Renewable Fuel Standard continues to impose costly federal mandates that increase fuel prices throughout the supply chain. This results in a hidden cost embedded in every gallon sold.

Supporters describe the proposed legislation as a straightforward consumer choice, but the bill removes small refinery exemptions, the only relief mechanism available to small and independent refiners managing those federal compliance costs. While large oil companies can absorb these costs, smaller ones require protection. Removing these exemptions puts smaller refiners under pressure, tightens refining capacity, and causes supply constraints that push prices upward.

Reduced refining capacity leads to less fuel supply, which in turn drives prices higher. At a time when Americans are concerned about inflation and affordability, Congress should avoid policies that make fuel more expensive to produce.

The clearest indicator of who benefits from this setup is the ethanol industry, which relies on federal mandates to maintain its market position. Current Renewable Fuel Standard mandates are already at record levels and demand more ethanol than the market is projected to naturally consume. Expanding E15 increases pressure to raise these mandates further, escalating compliance costs and making fuel more expensive throughout the supply chain.

The winners in this scenario are corn producers and the lobbying groups built around the Renewable Fuel Standard. The losers include everyday Americans: drivers who thought they were getting a deal, small-engine owners whose equipment isn’t compatible, independent refiners losing their only protection, and consumers who will bear the hidden compliance costs embedded in every gallon, regardless of the choice made.

Congress and the ethanol lobby are asking Americans to believe that E15 is a simple consumer benefit. If that is true, why does it require federal mandates, emergency waivers, congressional intervention, and the elimination of long-standing refinery protections to succeed?

Key Questions for the Senate

The Senate has an opportunity to ask questions that the House overlooked. Will this proposal actually lower costs for consumers? Will it protect drivers from misfuelling and vehicle damage? Will it preserve independent refining capacity and American energy security?

Until these questions are addressed, lawmakers should remain skeptical of claims that E15 expansion is a win for consumers.

Aiden Buzzetti is president of the Bull Moose Project.