As of December 2007, the rack price of ethanol was $2.24 versus $2.35 for unleaded gasoline--a difference of 11 cents per gallon. The ethanol rack price was 16 cents higher compared to last month's price but 19 cents lower than a year ago. Unleaded gasoline's average rack price was 17 cents lower than last month's price but 66 cents higher than a year ago
The year 2007 brought additional operating capacity for ethanol and, with the additional supply, brought lower prices. Higher crude oil prices pushed unleaded gasoline prices higher. The average ethanol price for 2007 was lower than 2006, but the 2007 average unleaded gasoline price was higher than 2006. The ethanol average was $2.24 compared to $2.58 (a 13-percent decrease), and the unleaded gasoline average was $2.23 compared to $1.94 (a 15-percent increase).