Will Georgia's Ethanol Production Influence Gas Prices?

Feb 11, 2013

Most gas you put in your car contains 10% ethanol. And most ethanol comes from corn, which is in short supply due to drought. As a result, many plants across the country have gone idle, including Southwest Georgia Ethanol in Camilla, Georgia.  

When in production, Southwest Georgia Ethanol is the only 100-million-gallon plant in the state. Though idle since October, President Murray Campbell says they expect to restart production sooner than plants in the Midwest.   “We know we are going to restart in July. We've been booking corn with local farmers since late fall and early winter.”  

When the plant starts back up, Campbell says it could impact the price of gas -- but not necessarily. “I don’t know if our particular restart will decrease the price of gasoline significantly but it will be cheaper for customers that we have, they’ll be buying ethanol cheaper than having to buy it from an outside area."

Campbell says more ethanol production overall could help lower the price at the pump since it’s cheaper to produce than regular gasoline.