Gas mileage does increase with non-ethanol gasoline.

Here is the crazy part, You have to consume more ethanol based gasoline than non-gasoline to go the same distance. Ethanol based gasoline produces more CO2 for the same distance as non-ethanol based gasoline. Ethanol based gasoline releases more CO2 to the environment than non-ethanol gasoline? Where are the AGW alarmists?

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burning ethanol actually produces 54% more CO2 as global warming pollutant than gasoline due to the fact that ethanol has lower fuel efficiency.
http://www.intota.com/docs/ethanol-pollution.asp