WEISENBERG TOWNSHIP, Pa. – Gasoline prices are now at their highest point since the beginning of the war with Iran, but there’s one thing helping them from going even higher: Corn.
On Henninger Farm in Lehigh County’s Weisenberg Township, it’s planting season. Corn seeds are going in the ground. In the Lehigh Valley, most of that crop is going to end up being used to feed animals, but Kyle Henninger said he’s encouraged seeing the impact ethanol, and the corn it’s made from, is having on gas prices.
“I mean it helps. Every time you have a user that’s using some of the product that I’m planting, it definitely helps,” said Henninger.
Henninger said, if gas prices stay high, the demand for ethanol and the corn it’s made from is going to grow.
“They’re going to grow it in Brazil. They’re going to grow it in Argentina, and if the prices get high, they’re going to grow it everywhere,” said Henninger.
Many countries are already considering increasing the use of ethanol to lower prices at the pump. Reuters is reporting India is considering allowing fuel containing 85% to even 100% ethanol right now. Here in the U.S., the most common gas is E-10, with 10% ethanol.
“The government has to mandate percentages that we’re allowed to use. The market doesn’t dictate it. Maybe now it will,” said Henninger.
And it is.
The EPA announced an emergency waiver, taking effect May 1st, allowing the sale of E-15 gas nationwide and removing all federal impediments to making E-10, arguing it will “reduce unnecessary costs.” The company Pennsylvania Corn Processing, LLC hopes that waiver can someday be made permanent.
“As an industry, we’re trying to get a law passed to make it year-round sale. Everybody that we talked to is all for it, but how do we attach it to a bill becomes the problem, and then getting that bill through Congress becomes the problem,” said Corn Originator Brian Kelly.
Back on Henniger Farm, he’s just hoping his crop sells for a little more this year.
“This last three, four years things dropped off, but now maybe it’ll perk up again,” said Henninger.
The EPA says, right now, there are about 3,000 gas stations selling E-15 gasoline around the country. After May 1st that’s likely to increase, and E-15 will become more widely available, selling for cheaper than even E-10.