U.S. Drivers Send Message To Government: Bring On More Ethanol

Possibly as early as next week, the House of Representatives will vote on a bill that would dramatically increase the number of gas stations with ethanol (or E85) fuel pumps nationwide. And according to a just-completed series of snap polls conducted across the Autobytel online network, a "yes" vote would have the support of most Americans.

Fifty-one percent of poll-takers say the government should pay for the expansion of E85 pumps across the nation while only 28% said it shouldn't. (The remainder admit they're not informed enough to say.) And when asked to name the single best thing the government could do to reduce America's dependence on foreign oil, 32% (the second largest bloc of respondents) advocated funding E85 pumps at more gas stations. This easily outpaced the 22% who proposed the "quicker fix" of raising C.A.F.E. standards, for example, or the 12% who prioritized increasing the tax incentive for hybrid vehicle buyers – and trailed only the 35% who proposed a more general approach of funding research for alternative fuel technologies.

But while car shoppers may be pinning a lot of hope on ethanol as an energy solution, at least some of this optimism may stem from some very basic misconceptions about the fuel. Case in point: Nearly half (47%) of the car shoppers polled by Autobytel thought they would spend less to drive with E85 fuel, while only 32% understood that they'd, in fact, spend significantly more versus gas for the same amount of driving. … A lot more, given the current ethanol costs of nearly $4.50/gallon in some markets, on top of the fact that ethanol delivers worse fuel mileage than gas.

That's not to say that ethanol prices won't come down to earth in the future – they almost certainly will – but it does suggest that drivers may be in for a shock when they see E85 prices advertised at the local gas station – and when they realize that less-fuel-efficient E85 would have to cost about 20% less than gas to break even.

It also suggests, in turn, that U.S. automakers' marketing of ethanol-capable vehicles may become a harder sell as drivers become aware of E85 costs. Not surprisingly, 62% of the shoppers surveyed by Autobytel said they wouldn't pay a penny more, per mile of driving, to achieve ethanol's potential benefits of increased fuel independence and improved emissions.

Confused About Ethanol? Autobytel Experts Are "Clearing the Air"
As part of the ongoing "Clearing the Air" series at Autobytel.com – designed to educate auto consumers about emerging fuel-efficient and alternative-fuel vehicle options – Autobytel's auto experts are helping dispel common misconceptions about E85/flex-fuel vehicles. For a concise, objective overview of "10 Ethanol Facts You NEED to Know," log on to www.autobytel.com.

Fuel Fast Facts based on Autobytel's new automotive consumer polls:

• 65% of car shoppers agree that we are, in fact, in the midst of an "energy crisis," similar to that during the 1970's.
  
• Only 35% say their current vehicle gets at least 25 mpg – and only 16% say that their current ride gets at least 30 mpg. Yet 71% say that their next vehicle purchase must get at least 25 mpg, and 43% say it will have to get better than 30 mpg. ...And 15% say it will have to get at least 40 mpg.
  
• When asked to describe their general impression of hybrid vehicles, 39% replied "too expensive for the hybrid benefit" and an additional 28% selected "not a real solution, more of a statement."
  
• 72% think that Congress should raise fuel economy (C.A.F.E.) standards for the automakers.

SOURCE: Autobytel