July 11th, 2025

We know – while it’s great that E85 is less expensive than gasoline, there’s some questions about why — and if that’s going to change. There are a few key reasons why E85 is easier on the wallet and why its price stays stable even when gas prices spike. 

E85 contains 85% ethanol, which is a biofuel made mostly from corn and other renewable crops grown right here in America. Because it’s produced in the U.S. and doesn’t rely on the global oil market; ethanol is less affected by any geopolitical factors, supply chain issues, or oil production cuts that can send gasoline prices soaring. Plain and simple: E85 offers more price stability.

Ethanol is generally cheaper to produce than California gasoline, especially when oil prices are high. Most of California’s oil comes from overseas. Ethanol is mostly made in the Midwest, further cutting costs. 

While E85 may deliver slightly fewer miles per gallon due to its lower energy content, the savings per gallon often outweigh that difference — especially for California drivers who fill up consistently with E85.

When traditional gasoline prices inevitably swing, E85 stays relatively steady — making it a smart choice for flex fuel vehicle drivers who want both savings and sustainability.