Gasoline and diesel up to €0.25 more expensive? Yes, and Europe is preparing a 'plan B' that won't please everyone
Europe is facing serious problems with gasoline and diesel prices. Experts estimate that the price per liter of these will increase significantly by 2030, which is why a new fuel is being sought. E20 is an interesting and possible solution, with its advantages and disadvantages.
European politicians know that electric cars are not a short- and medium-term solution for citizens, even though electric energy is already a real alternative to gasoline and diesel. But, if today's gasoline and diesel prices are what they are, in two years, we will see how they inflate to €0.25 per liter.
An extremely important increase that European parliamentarians are obliged to find a cheaper alternative for thousands of citizens. Synthetic fuels are not it, today only gasoline is produced which would leave hundreds of thousands of diesel cars abandoned, exactly what Europe would like, and its price is also a big problem.
Gasoline and diesel, up to €0.25 more expensive before 2030
The solution for some is E20, a special gasoline with 20% bioethanol, so if only the fossil fuel component is subject to CO2 costs, E20 could be offered at a lower price than conventional premium gasoline or E10. Brands like Volkswagen are already testing the use of E20 in older engines; specifically, from a decade ago.
The goal is whether a large number of their customers could benefit from a cleaner fuel in their cars without making modifications to the blocks, paying special attention to ensure there are no losses in engine performance. What is known is that, backed by various studies, E20 reduces emissions but does increase fuel consumption.
Europe's salvation is called E20... for drivers, not
The big problem is that, starting in 2027, the new EU Emissions Trading Scheme for transport and construction will come into effect, bringing with it a new price for a ton of CO2; initially, €45, but it will gradually increase to an unknown cap.
The problem is that, when that regulation comes into effect, each liter of gasoline or diesel will carry a surcharge for the CO2 it emits, which will be calculated at the price of €45 per ton. In practice, it will make refueling more expensive because, of course, oil companies will pass that extra cost on to us.
For this reason, E20 is key to reducing costs, although for citizens the problem is twofold; first, because E20 increases consumption, approximately 3% more, since ethanol has less energy power than gasoline, and second for the wallet. Considering the cheaper price of a ton of CO2, each liter of gasoline would carry a surcharge of about ten cents which, in a 50-liter tank, would be an additional €5 per fill-up.
