When a longstanding ethanol subsidy expired on New Year's Day, the change likely went unnoticed by the majority of drivers on the road. However, they may be feeling the pinch as a result, as analysts believe that termination of the program will lead to higher gas prices, USA Today reports.<\/p>\n
The change could come as early as next week, with some experts predicting a 45 cent-hike in the price of a gallon of gasoline. The reason is because ethanol, which has been shown to have smog-reducing characteristics, accounts for about 10 percent of many gasoline-based fuels. Still, despite the ominous predictions, some believe that there might not be a significant upward swing given the added emphasis on clean burning gas and fuel-efficiency.<\/p>\n
"Things have changed. The marketplace has changed," Matt Hartwig of the Renewable Fuels Association, which represents ethanol makers, told the publication. "Today, ethanol is 10 percent of the nation's gas supply."<\/p>\n
Whether or not gas prices rise significantly, taking steps to improve your fuel economy is never a bad idea. According to Edmunds, there are a few proven ways to help save money at the pump that you can start implementing today. For example, driving more moderately offers an average savings of 31 percent. In a similar vein, driving slower on long trips can save motorists an average of 12 percent.<\/p>\n