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indianasolar

Why is Gas America E85 always Cheaper!

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I can tell you why.

 

Then blend the E85 themselves!

 

Thats right, they buy the ethanol and then blend it. They get the 42 cent blenders credit.

 

I found this out when I call Gas America Head quarters (In Plainfield, Indiana).

 

I spoke to Jim, the corporate fuel buyer. This is also when I found out that the new Gas America was going the carry E85. (Corner of Smith Valley and Morgan Town Rd.)

 

 

Yes, I know I should have posted this six months ago. 

 

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When enough retailers start doing this it should create enough competition that either oil blender racks will have to compete or you will see a lot more of blender pumps - particularly at non-major oil companies such Gas America, Gas City, Flying J, and Pilot. These guys are not bound by Major Oil contracts that prohibit blending in your own ethanol into NL gas. This is exactly what needs to happen to shorten the chain so consumers see E85 as a viable competitor in the energy markets. In the right market and with the right price and advertising- they could easily move more E85 than their mid and premium grades combined and that is today when only about 4-7% of the vehicles are flex-fuel.

 

How are they priced relative to gas?

 

Larry- there are so many ethanol plants popping up in Indiana- all they need is a forward contract from 1 and have it delivered right from the ethanol plant as they need it if they have blender pumps at the retail end- otherwise the ethanol plant will have to put a blender arm in OR they will as you say- need to run it through a tank farm, lease storage at a terminal, or splash blend on the truck (which is frowned on by terminal operators and some ethanol plants due to increased risk and smaller loadings.

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. These guys are not bound by Major Oil contracts that prohibit blending in your own ethanol into NL gas.

 

I would have thought contracts like that would be illegal... Maybe this is a target for our pro ethanol Senators ?

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Dan- some states have moved against oil companies for "contract rules" regarding E85 acceptance into branded stations and signage but few have dealt with the supply contract side - if the major offers an E10- guess where at least that ethanol must come from?- if the station wanted to use a blender and straight E98 to make E85 (or any blend)- the first  ethanol will have to come from the base E10 even IF the major will allow the E98 to come from outside sources. Granted in E85 this would only be 1 1/2 % or 3% in winter blend. The problem is much greater as the % ethanol blend drops. IF the major also prohibits ANY product they do not sell at the terminal to be sold under the island then that is dealt with in many of these new laws popping up. IF the major offers ethanol at the terminal and forces the station to use it in all blends including E85- then this is the worst senario.

 

Did this make any sense or did I slaughter that explaination? :-[

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MMM it USED to be,  the past 2 weeks Meijer has been sneaking up and dropping thier e85 20-30 cents cheaper than Gas America. (all because of thier 50 cent below Regular unleaded pricing policy.  As of today  Gas America is only 30 cents cheaper per gallon.

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I know this thread is old but, the mejier by my house has always been about 20 cents cheaper than unleaded, though right now is only 10 cents cheaper.  During the summer i go to the gas america on smith valley to fill up the 240sx since i run e85 in it.  I hope they put a e85 pump in the gas america by my house (5 min) so i dont have to drive to the smith valley one (20 min drive).  I usually add a couple gallons of e85 to my daily (93 civic) so i get a mix of e30 or so.  The higher ethanol mix bumps my mpg +4  :D

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