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mpersell

Kroger back to their old over priced ways.

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Kroger has decided to promote E85 by raising the price and re-attaching it directly to the price of gas at a spread of 30 cents per gallon.

 

Back to other grocery stores until they get to the 20% spread.

 

One attendant said there hasn't been a gallon of E85 pumped since he raised the prices.

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What or which stores are you referring to?  I took a peek at the Kroger stores in Ohio and found greater than a 20% spread (less than gasoline) this month with one posted price of $1.31. :)

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  Yes Kroger is pulling back from the 27% spread to around 16% but in this Market thats pretty darn good Texas overall is still looking strong http://e85prices.com/texas.html

 

Considering the National Average Price spread has dropped to 8.76% the worst it's ever been !  We have to get rid of the expensive corn first and or Gasoline has to rise at least 50 cents a gallon before the price spread rebounds as a National Average

 

Considering Krogers past with E85 I'd be very grateful if they can even hold the 16% spread

 

How long can the farmers not sell corn at the cheap prices ($3.80 a bu)? http://www.cbot.com/cbot/pub/page/0,3181,1213,00.html How long before the corn starts to rot /or degrades in the silos? I understand they want the best price also ..

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Kroger doesn't price by the spread, they price by a discount.  The arrogant SOBs I've talked to feel they're doing you a favor by not selling it for the same price as E10 so they give you a 30 cent per gallon discount.  The 50 cent discount was a temporary "sale".

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Well, it appeared earlier this year that Meijer was pricing right along with Kroger (Kroger in Indiana has yet to provide E85)  If so, and you fuel at Kroger, hang on to your wallet.  Meijer was at 30 cents less for E85 earlier this year, then went to 50 cents less,  2 weeks ago went back to 30 cents less.  At one time about 2 weeks ago Meijer had e85 for 1.42/gal.  Now E85 is 1.97 and gas is fluxuating from 1.69 to 1.89/gal.  (9 to 29 cents less than E85).

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It is a tough situation right now for E85 pricing guys. If the retailer/wholesaler had a fixed price contract or is buying spot- it will not look pretty and will be likely in the $1.75-1.98 range depending on where in the country you are (tax rates, freight, and ownership chain). At current corn costs no ethanol producer can underwrite E70.

 

The one ethanol contract right now that will look good is an old NYMX minus contract. This would be a killer for an ethanol plant but would look sweet on a retail basis if this value was passed on to the consumer.

 

One of the beauties of FFV's and E85 is that you have a choice and can make your own decisions which to buy. IT IS NOT LIKE THE GAS/DIESEL RELATIONSHIPS WHICH ALSO GET OUT OF BALANCE AND YOU HAVE NO CHOICE. ;) At least both gas and diesel come from the same barrel keeping them a bit more in lockstep but ethanol feedstocks are tied more broadly. This also is an ugly side effect to the producer side of the ethanol business and thus the desire of many ethanol plants to rely on E10 so heavy.

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Hey Mpersell, are there any other E85 stations in your area or just Kroger?  I agree, their spread is terrible considering that most stations can get 20% plus now.  Just was noticing the Texas page of the E85prices site, and that you've got dozens of recent posts there of only 4-5% spread.  It's an awful shame.  Any other stations there selling for better spreads that you could post to show the difference to others and where to go?

 

texas.html

 

http://e85prices.com/texas.html

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Hey Mpersell, any other E85 stations in your area you could report prices from?  To help others find better price spreads than the awful ones Kroger is allowing for, it would be nice to see other stations' spreads if there are any.  If not, it looks like a good opportunity for someone else in the neighborhood to set up E85 shop.  Thanks.

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There is one other vendor here but he takes his price lead from the local Kroger store.  He is now in the 10-12% range for a price spread.  It looks like more when you use his prices for gasoline but his gasoline prices are high.  He sells a lot of E85 to nearby car dealers who are looking for a cheaper way to have some fuel in the tank of new FFVs sold.

 

He's also a part of a chain of dealerships, one of which is a Hummer dealer. Don't know what the future holds for them overall. 

 

 

 

Hey Mpersell, any other E85 stations in your area you could report prices from?  To help others find better price spreads than the awful ones Kroger is allowing for, it would be nice to see other stations' spreads if there are any.  If not, it looks like a good opportunity for someone else in the neighborhood to set up E85 shop.  Thanks.

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