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dan45mcc

Ethanol More Expensive than Gasoline

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It is Not an assumption..come on racer..How the hell do you think E85 can be 50 cents less per gallon when ethanol was priced the same as gasoline at the commodity markets?(or just a few cents less)  Seriously come on now ..the VEETC is generally be passed on..yes clearly some skimming is occurring but for the most part it is being passed on

 

agree corn needs a 'happy medium"  $6+ is NOT that happy medium when Oil is  at $85-$90 a barrel

 

If E85 is 50 cents less per gallon and the credit is only worth 38 cents, where is the extra 12 cents coming from?

Christ man did you even bother to read my calculations

 

 

You can refuse to believe the VEETC is not being passed on all-day long but your "belief" has nothing to do with reality.

 

 

Quit being so damn stubborn and learn to do the actual calculations

 

 

As Far as Iowa and where is the other nickle coming from

If I choose I can get E10 for $0.10 per gallon less than E0 just about everywhere. The VEETC on E10 is $0.045 per gallon, so evidently out of the kindness of everyones precious little hearts they are giving away the extra $0.055 per gallon if the price of RBOB and CBOT Ethanol is the same? But they must be making it back on E85 sales or something because the price difference is does not add up whatever the blend.
..You do Realize that Iowa (as most States) also have some credits/lower taxes on ethanol

 

The numbers just simply don't add up! Show me proof! You can talk about Iowa and the taxes, but Nebraska's don't add up. Nothing adds up to the same result.

 

This thread was started about Ethanol being more expensive than gasline on the open market. Only in a few limited regions, E85 was more expensive than gas, but the value of the blenders credit was not showing it's ugly head. If The market value was the same, all things considered, with VEETC, E85 should have been a bargain and it was not! Show me the numbers, that's all I'm saying!

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Boys, Boys -- the truth is somewhat between you. Keep in mind that when ethanol is purchased from ethanol plants that the ethanol plant's netback is roughly 30 cents less than what the oil terminal price is for ethanol. (this means that the terminal profits on it are nearly the gross margin from oil crack spreads) When you apply the tax credit from E85 to this it appears that Racer is correct--however Dan is correct that the credit is passed on through the invoice. The ISSUE is that the 30 cents gross at the terminal is excessive for a product that is just passthrough. ADD to this the issue of improper taxation on a btu basis and then you do not have to have too many other problems (ie corn strength) to screw up everything. Ethanol plants MUST open up their racks to wholesale E85 so this oil terminal price problem becomes a mute point. If these plants had their gates open right now E85 retails would all be in the mid-upper 2's today. ;)

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It is Not an assumption..come on racer..How the hell do you think E85 can be 50 cents less per gallon when ethanol was priced the same as gasoline at the commodity markets?(or just a few cents less)  Seriously come on now ..the VEETC is generally be passed on..yes clearly some skimming is occurring but for the most part it is being passed on

 

agree corn needs a 'happy medium"  $6+ is NOT that happy medium when Oil is  at $85-$90 a barrel

 

If E85 is 50 cents less per gallon and the credit is only worth 38 cents, where is the extra 12 cents coming from?

Christ man did you even bother to read my calculations

 

 

You can refuse to believe the VEETC is not being passed on all-day long but your "belief" has nothing to do with reality.

 

 

Quit being so damn stubborn and learn to do the actual calculations

 

 

As Far as Iowa and where is the other nickle coming from

If I choose I can get E10 for $0.10 per gallon less than E0 just about everywhere. The VEETC on E10 is $0.045 per gallon, so evidently out of the kindness of everyones precious little hearts they are giving away the extra $0.055 per gallon if the price of RBOB and CBOT Ethanol is the same? But they must be making it back on E85 sales or something because the price difference is does not add up whatever the blend.
..You do Realize that Iowa (as most States) also have some credits/lower taxes on ethanol

 

 

 

This thread was started about Ethanol being more expensive than gasline on the open market. Only in a few limited regions, E85 was more expensive than gas,

 

For starters Ethanol was more expensive than Gasoline AND in Nearly EVERY Market in the US E85 is MORE expensive than Gasoline.. E85 HAS to be at least 15% less than Gasoline because of the lower MPG on E85..THUS E85 IS more expensive in nearly every Market

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Bottom line is extending the VEETC (whether it is actually passed on or not) to E85 is NOT a solution it is a bandage to the larger issue of running up the price of corn for the sake of E10. That is the problem for pricing E85 competitively

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