Bruce Babbock claims that we're "pretty well hooked" on ethanol, which is more expensive and contains less energy than real gas

Gas prices may go up too because of drought - Bottom Line

Economists are already predicting price increases for staples like milk and beef as scorching heat and drought wreak havoc on America’s corn crop. Now, beleaguered consumers can add gasoline to that list.

“We’re pretty well hooked on ethanol,” said Bruce Babcock, professor of economics at Iowa State University. “It’s 10 percent of our gasoline supply.” The complexity of the market makes it hard to predict exactly what this will mean for drivers, but Babcock estimated the impact of ethanol, which is derived from corn, among other grains, could be as high as 15 cents a gallon....

A 46-cent per gallon subsidy to ethanol producers expired at the end of last year, which means the product is exposed to market gyrations...
Up until now, "ethanol in 10 percent blends has been sold at the same price as gasoline," University of Illinois agriculture and consumer economics professor Darrel Good said via email. "If ethanol prices go above gasoline prices, then that will tend to raise prices at the pump."

With only 2/3 the energy of gasoline, ethanol costs more per mile

The USDA tells us that ethanol cost 57¢ more per gallon on average over the last 25 years (and it still does). Put that together with the fact that it takes 1.53 gallons to equal a gallon of gasoline.