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I saw a 4% drop in mpg in my '96 Subaru Legacy when Oregon mandated E10. If I lived in a place that allowed the consumer freedom to choose what to run, I would only choose E10 if it were at least 5% cheaper than E0; about 17 cents cheaper with current fuel prices.
Correct me if I'm wrong, but I always hear that corn-based ethanol is government subsidized. If this is true, then we aren't directly seeing the cost of E blended fuel.
We need to remove subsidies for both petroleum and ethanol and allow the market to do what it does best; balance supply, demand, and cost.
With as many shortcomings as it has, petroleum prices are at least drought-immune. I spoke with a few farmers in CO recently, and they say if the mountains don't get a good snow pack, there won't be enough water for corn next year.
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