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Why is super unleaded gas in Iowa cheaper than unleaded 87?

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Wiki User
2011-09-13 15:31:18
2011-09-13 15:31:18

Because it has Ethanol in it. The Ethanol increases the octane and lowers the price.

AnswerBecause it has ethanol in it. Ethanol actually decreases the power of gasoline, and subsequently decreases mileage as well. Interestingly, it also makes gasoline more expensive- BUT - this is Iowa, and the government is subsidizing the addition of ethanol to gasoline. In Missouri, where the government does not subsidize, gasoline with ethanol is MORE expensive than its Iowa Counterpart.

Long story short, its cheaper because of government subsidies.

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