ERHC Energy Inc (ERHE)

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Gasoline blends and MPG

1) Ethanol is blended to 'winter formula' gasoline by mandate. (MTBE and ethanol were previously used, MTBE not anymore)

2) Ethanol has fewer BTUs per gallon

3) Gasoline only engines are not optimized to run on 15% ethanol

4) 'Winter formula' gasoline is run in the winter (i.e. engine spends less time in the optimum temperature range and therefore less efficient)

Take these together and 15-20% lower MPG.