Renewable Fuel Standard Saves Consumers 22 Cents on Every Gallon of Gas

The Renewable Fuel Standard (RFS) has lowered gas prices by an average of 22 cents per gallon in recent years and saved the typical American household $250 annually, according to a study published by economist and energy policy expert Dr. Philip K. Verleger, Jr. The study used an econometric model to estimate the impacts of the RFS, which requires refiners to blend increasing amounts of renewable fuels with gasoline and diesel, on crude oil and gasoline prices over the last four years (2015-2018). Findings reveal that the RFS has provided substantial economic benefits to consumers in the United States and worldwide.