Topic: Albany Campus Mobil 32% spread (Read 3649 times)

Dan M · « **on:** October 01, 2007, 12:23:59 PM »

Anyone know whats going on in New York.. I've been getting really great price spread reports 30% and higher $1.99 E85 as a "set" price .

I called the Albany Campus Mobil today to verify the price ..(because it is well outside standard for that region) sure enough $1.99

Not sure if this is a month long introdctory pricing scheme to attract / create a Market or if it really is going to be a normal price spread for them ..

Dosent New York still truck in all their ethanol ? or did a new ethanol plant go up in New York ?

1outlaw · « **Reply #16 on:** October 04, 2007, 08:30:14 PM »

Thats ok rufus- the straight stuff is more fun to race on

rufus · « **Reply #15 on:** October 04, 2007, 06:45:15 PM »

Oops, I tried to sell'em straight alky, didn't I? Thanks, Outlaw.

1outlaw · « **Reply #14 on:** October 04, 2007, 06:04:01 PM »

rufus- they do not have 33 cents to play with. You have to take the 1.52+0.10 rail freight ethanol- .51 = 1.11 x % blend of say .8 = 0.888
+ % gasoline, say 20% thus .2 x2.30 = 0.46
-----------------------------------------
= 1.348
+ state/fed tax (estimated) .513
+ estimated truck freight .03
-----------------------------------------
= 1.891

This cost would vary greatly for several reasons; actual state taxes, freight costs, wholesaler margins (if there is one), gasoline price blended in (2.30 above is one day rack), and the fact that the 1.52 is a spot price based on a given period of time for very large trade deals. This aside- you can see how 1.999 could be possible though the above station would not be making enough to survive at 1.999. To pay fixed and variable costs he would likely need about 2.069 minimum- perhaps a little more if he wants to put something aside for expansion.

cessna · « **Reply #13 on:** October 04, 2007, 08:00:42 AM »

Here in Iowa tax is 38 cents for Federal and State on a gallon of unleaded. Then knock a nickel off for the 10% ethanol gal.

rufus · « **Reply #12 on:** October 03, 2007, 08:22:48 PM »

Should that have been $0.18 Federal, + $0.55 State?

rufus · « **Reply #11 on:** October 03, 2007, 08:16:07 PM »

Cash price for ethanol, today, was $1.52. The blender's credit brings it down to, what, $1.01? Add in a dime for shipping, and ($0.55?) tax, and you've got $0.33 to play with? A bit thin, but doable, right?

BTW, The American Lemans Series is, evidently, going to run on E85 next year. Does anyone know how to find out how their mileage was this year on e10, compared to what they ran on last year?

cessna · « **Reply #10 on:** October 03, 2007, 08:31:00 AM »

I'm pretty sure that the tariff can be bypassed easily. I think 7% of U.S. capacity can be imported duty free directly from Brazil and the rest can be dewatered in Central America and qualify as duty free. When I hear the directors on the LLC's I'm in complaining, I'm going to tell them about how they have down nothing to promote blender pumps and at least 20% here in the midwest.
Marty

Greengenes · « **Reply #9 on:** October 03, 2007, 08:11:28 AM »

Sounds doable. Plus the 54 cent tariff, it's still going to be pretty cheap at the harbor.

Who is doing the blending & delivery ?? Anyone we've heard of before ??

Could the two ethanol plants in New York state be finished already ??

cessna · « **Reply #8 on:** October 03, 2007, 07:54:29 AM »

Another thought came to mind last night when thinking about the Albany E85----could it be some imported Brazilian ethanol brought into New York harbor?

Dan M · « **Reply #7 on:** October 02, 2007, 10:02:33 AM »

interesting.. well it certainly is a region to keep an eye on .. I didnt post the first few e85 prices that were submitted because it looked very suspicious..just didnt seem possible for that region.. until I called and verified .

very nice to see.. now going to be intersting to see if they can sustain the spread

1outlaw · « **Reply #6 on:** October 01, 2007, 08:51:55 PM »

With wholesale ethanol prices as they are, rail freight from Midwest to New Jersey only 8-9 cents, and cheaper gas in New York to blend it with-- this is very possible, particularly if someone out there is moving the alcohol direct off the rail or if New York has tax credits for E85 (or less state road tax to start with- WI is $0.329/ gallon + $0.184 Federal). I think this looks like someone is doing what I have been preaching- keeping extra fingers out of the pie

There are some independent ethanol terminals going up around the country that off-load rail to storage to truck- maybe that is the route they are taking.

Yes Cessna- that would be pretty sweet if you would do that in Virginia- there are folks out there that would love to see this happen- of course there are those other guys that would like to squish you too!

Greengenes · « **Reply #5 on:** October 01, 2007, 08:43:11 PM »

You might have a traffic control problem on your hands.

Maybe you can drain directly from the railcar thru the blender pump..

cessna · « **Reply #4 on:** October 01, 2007, 05:56:59 PM »

Maybe somebody is getting it in on a rail car and blending it out there. You never know? I've been thinking if I ever move back to Virginia where I was raised, maybe I could set up some E85 only refueling outlets in the more populated areas. Then get the ethanol plants I'm in to send me a few rail cars every now and then at wholesale and sell it at Utica's prices-----do you think I'd be sabotaged?

Marty

Greengenes · « **Reply #3 on:** October 01, 2007, 04:38:52 PM »

From the plant in Indiana it isn't too far away.

You might be right , tho. Sounds like an introductory price ...

Dan M · « **Reply #2 on:** October 01, 2007, 04:33:00 PM »

Quote from: Greengenes on October 01, 2007, 04:28:15 PM

There's a plant under construction in Shelby, NY ( near Buffalo ) and a few others I've heard of,
but can't find the info. They may be demo plants ..

If E85 is shipped in or blended elsewhere the alky could be coming in from Indiana.

A listing of current plants & projects : http://www.ethanolrfa.org/industry/locations

there's also a link to a nifty map in .pdf format just above the table.

well if they are trucking it in I dont see hwo they can get to $1.99 ..outlaw ?