But see, you are getting 15% less mileage with ethanol, and so over time you will spend more money because you have to buy more of it. You have to use an seven liters of ethanol for every six liters of gasoline you use.
For example. Lightbulb A costs $1. Lightbulb B costs $3. ($2 difference) They both put out the same light, so the initial reaction is to buy Lightbulb A. But after 1 year Lightbulb A quits working and Lightbulb B lasts 5 years. By the time Lightbulb B burns out you will have bought five Lightbulb As and spent $5, while Lightbulb B only cost you $3.
Over the life of a car, even with a $2 difference, gasoline will be cheaper.
It is the same issue with the hybrids. They cost so much more than a car of equal size that even though you buy less gasoline you won't make up the difference over the life of the car.