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E-85 initially takes 30-40% more fuel, but after tuning for it you can gain back some mpg and still are only paying $2 a gallon for 104 octane. There are plenty of high powered forced induction street cars that swear by it and have dyno results to prove the gains. One person hit 430whp on a small turbo kit and stock engine and cam, 1.9 rockers running E85. I can say it kills at least 6-10* of knock.
If I wanted cheap fuel economy I would put 87 octane in and tune for that to run safe, granted I would have to pull about 10 degrees of timing and more, but that would not be fun at all.
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