September 16th, 2025

A 2023 analysis from the Renewable Fuels Association (RFA) shows just how impactful choosing E85 can be for California drivers. In 2023 alone, those who fueled up with E85 saved an incredible $99 million collectively, all while cutting down on harmful emissions. That’s money in people’s pockets at a time when gasoline prices remain unpredictable and often hover around the $5 mark in many parts of the state.

New research shows the benefits are only expected to grow. A 2025 study conducted by the Southwest Research Institute (SwRI) for Pearson Fuels indicated E85 not only delivers big savings now, but also positions California for even greater future environmental and economic benefits. 

The Math

Californians bought a record 118.5 million gallons of E85 in 2023 — a 14% jump from the year before and nearly double 2021 levels. The reason is clear: E85 averaged $3.17 per gallon compared to $5.01 for regular gasoline, a 37% discount at the pump. For the state’s 1.3 million flex fuel vehicles (FFVs), that meant about $74 in annual savings per driver — adding up to nearly $99 million saved statewide.

And the trend isn’t slowing. From January 2023 through early 2025, E85 averaged 36% cheaper than gasoline. Even after accounting for the energy content of ethanol and gasoline, California drivers still came out ahead with a 19% net savings.

Cleaner Air, Better Performance

Saving money isn’t where the benefits of E85 end. The RFA reports that switching to E85 in 2023 prevented 369,518 metric tons of greenhouse gas emissions.

Looking ahead, E85 could cut up to 1.4 million metric tons of emissions annually by 2035 – while saving drivers more than $200 million every year.

Momentum Is Building

E85’s rising popularity is also fueled by its growing availability. Pearson Fuels continues to expand the number of E85 stations across California, giving drivers more opportunities to access the lower-cost, cleaner-burning alternative. New stations are opening regularly, making it easier for FFV owners to take advantage of the price and environmental benefits.

Usage is accelerating too. Average annual E85 use per FFV jumped from just 14 gallons in 2016 to 103 gallons in 2023. At this pace, that number could reach 400 gallons per FFV by 2035—a sign that California drivers are increasingly embracing fuel alternatives.

The Bottom Line

The message from these studies is clear: E85 is a smart choice for California drivers and policymakers. It saves money, reduces greenhouse gas emissions, and supports a more sustainable fuel future. With more stations and drivers choosing E85 every year, the impact will only continue to grow.

Switching to E85 isn’t just about what you save at the pump today—it’s about investing in cleaner air, stronger energy independence, and a more affordable way forward for transportation. 

Pearson Fuels’ Commitment

At Pearson Fuels, we’re proud to play a key role in this progress. By commissioning research, expanding access to E85 across California, and continuing to invest in infrastructure, we’re making it easier for drivers to save money and reduce their carbon footprint. We remain committed to building a cleaner, more affordable fuel network.

Download our app today for real-time prices at stations near you.