Are biofuels more expensive than their petroleum-based counterparts?

Because the cost of any type of fuel varies over time due to a variety of market, political, and production factors, it is difficult to say at any one time whether or not biofuels are sold for more or less than traditional petroleum-based fuels in the marketplace. On average, biofuels are generally comparable to traditional fuels in sales price, although they may be higher or lower at times, depending on gasoline and diesel prices. The non-monetary benefits of biofuels, such as environmental, national security and local-economy benefits, may also be taken into consideration by the consumer, even if they are not reflected in the cost of biofuels versus traditional fuels.

For more information on current market statistics, please see the Department of Energy Alternative Fuels Data Center or the Renewable Fuels Association. More.

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